The pound has weakened slightly against the euro and the dollar this morning following disappointing retail sales and consumer confidence.
Retail sales excluding fuel fell by 2.6% year-on-year in September and 0.2% month-on-month. This is the fifth consecutive month of decline. Gfk consumer confidence also fell for a third month, reaching the lowest reading since February. Markets now await PMI data.
The British Medical Association (BMA) has urged the government to implement its ‘plan B’ as Covid cases rise to a level they deem “unacceptable”. The number of new infections in the UK rose to over 50,000 yesterday, leading doctors to call for the reintroduction of certain rules, such as mandatory mask wearing. If cases continue to rise, sterling could be affected.
Hospitality businesses have warned that introducing ‘plan B’ during the build up to Christmas could have devastating impacts on their industry.
