Sterling has weakened this morning against the euro and US dollar, despite broadly positive news from the British high street.
Against most of its currency competitors, sterling has dropped by around 1% since early on Wednesday.
A busy week for high level data releases ended today with GfK Consumer Confidence at -44, its lowest since the survey began in 1974. GfK’s chief strategy director said: “These findings point to a sense of capitulation and financial events moving far beyond the control of ordinary people.”
If you know of someone who may require Smart’s services, this summer sees our largest ever referral bonus. As well as the usual £25 per successful referral (£50 for a business), you’ll be entered into a prize draw for £2,000 in flight vouchers. Make your referral here.
However, retail sales in the UK rose unexpectedly by 0.3% in July, against an expectation of a 0.2% fall. Petrol sales fell, while online retail rose by 4.8%.
That brings a busy week of data to an end. One in which we saw inflation remain steady at 3.8%, average earnings rising at 4.7% but prices rising by 10.1% (indeed, over 12% for retail prices), causing the biggest squeeze on real incomes on record.
Elsewhere in the business news, transport strikes continue in the UK. Yesterday it was the rail network almost countrywide, and today it’s London buses, trains and the underground. Transport Secretary Grant Shapps has warned he may impose anti-strike regulations.
Also in politics, Tory leadership candidates have continued to clash over tax policy, while the Institute for Fiscal Studies has warned that both candidates’ tax-cutting pledges are “unrealistic unless they’re going to set out detailed, deliverable spending cuts on a comparable scale.”
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
