After hitting a 10-week high yesterday against the euro, the pound has since weakened following disappointing retail sales data. Sales fell by 1.4% which was far from the market prediction of an increase of 1.6%. This brings with it signs that, perhaps, consumers are more cautious than was initially thought, which could threaten sterling.
Against the dollar, the pound is also struggling, falling 1.60% in a week – its biggest weekly loss in 9 months.
Next week, we will see Markit PMI data as well as the Bank of England’s interest rate decision, which is expected to remain unchanged at 0.1%.
