Sterling has had a difficult two days, falling by close to 3% from its peak on Tuesday against the US dollar and close to 1.5% against the euro. The reason has been the better inflation figures, which have reduced the need for the Bank of England to keep on raising interest rates.
We’ve just seen the latest retail sales figures for the United Kingdom which have revealed a 0.5% increase in January compared to December. According to the Office for National Statistics (ONS), retail sales have been especially high for online retailers. However, the ONS’s Director of Economic Statistics Darren Morgan warned that “The general trend remains one of decline.”
Next week is a quieter one for data, with PMI the main event midweek and GfK Consumer Confidence on Friday.
GBP/EUR over the past year
