The pound is trading mostly around the same levels against the euro but has weakened against the dollar after upbeat US data yesterday and disappointing UK retail sales data this morning.
Retail sales fell for the fourth month in a row in August, surprising markets. Nonetheless, if we look at the bigger picture, retail sales volumes are still 4.6% higher than their pre-pandemic level.
The euro has clawed back some of its losses against the dollar this morning as markets await inflation figures.
In the US, it was a different story for retail sales which far exceeded market expectations and subsequently boosted the dollar. Markets will now be focusing on consumer confidence figures this afternoon.
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