Sterling was stronger against both the euro and the dollar yesterday and remains strong this morning. This was possibly due to promising retail sales data, which built on the positive PMI data for July that we saw at the end of last week.
The Distributive Trades survey, conducted by the Confederation of British Industry, showed that retail sales in July rose to their highest level in almost a year, mainly due to food shopping. However, these figures are still being met with some caution, as the growth is moderate.
There is also some optimism surrounding Brexit talks, after Michel Barnier said earlier this week that he is “confident” a deal will be reached. Although differences still remain between the two sides, this comment offered some hope.
Positive news about a coronavirus vaccine also boosted the markets, as three firms have announced that they are starting late-stage trials of their vaccines.
Today, we’ll see mortgage lending and mortgage approvals figures for the UK, as well as consumer credit figures for June.
