The pound was slightly weaker against the dollar yesterday but stable against the euro, as weak economic data failed to move sterling.
Consumer price inflation fell to 1.5% year-on-year in October 2019 from 1.7% in the previous month and below market expectations of 1.6%. This was the lowest rate since November 2016. Average weekly earnings rose at a weaker pace in the three months to September.
Despite this, sterling remained stable against the euro due to increasing expectations of a Conservative election win. A YouGov poll released earlier in the week showed Johnson’s Tories had a 14-point lead over the opposition Labour Party. A decisive election win for the Tory party is seen as positive for the pound because it is thought to provide clarity on Brexit.
Today, we’ll see the release of retail sales data, which is due to show a slight year-on-year growth.
