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GBPUK consumer lending data beat expectations, suggesting a willingness to increase borrowing despite real incomes declining. Moody’s warned over the risks of a sharp increase in consumer lending. Mortgage approvals data printed close to expectations. Sterling confidence was again supported by expectations that the UK government would push towards a…
GBPWith no significant UK data releases last Friday, international developments dominated the market. The Pound strengthened to around 1.3150, near 10-month highs against the Dollar, but against the Euro it was unable to sustain the move beyond 1.1235 and settled close to 1.1170. Expectations of a ‘softer’ EU exit rose,…
GBPThe UK CBI retail sales index surged to 22 in July, up from 12 previously, and there was optimism surrounding the outlook for August which provided some reassurance surrounding consumer spending trends. Mixed reports surrounding Brexit talks surfaced yesterday speculating that the next round of talks would be delayed. It…
GBP With no tier one UK data, trading activity was muted. This was compounded by the summer holiday season and traders looking for US and Eurozone developments. The parliamentary recess and the fact that Bank of England officials will not be making any comments ahead of next week’s Monetary Policy Committee…
GBP UK retail sales data rebounded to beat expectations with a 0.6% gain for June following a revised 1.1% decline the previous month and year-on year growth at 2.9% from 0.9% previously. Warm weather boosted high street trade while the rate of price increases slowed considerably. Sterling moved higher after the…
EUR There were no significant Eurozone developments yesterday with the Euro vulnerable to a correction after strong gains, especially with position adjustment in evidence ahead of this afternoon’s European Central Bank (ECB) meeting. The Euro retreated to lows around 1.1510 against the Dollar overnight with some profit taking in evidence, especially…
GBP With no tier one UK data, Bank of England MPC member Ian McCafferty’s comments, in favour of an interest rate hike at the August policy meeting, provided Sterling support. There was selling interest above 1.2950 against the Dollar, and the Pound continued to recover some ground, reaching the 1.1365 level…
GBP The UK headline unemployment hit the lowest rate in over 40 years at 4.5% in the three months to May and there was a smaller than expected increase in jobless claims. Average earnings excluding bonuses increased to 2%, which will only add to expectations of a UK rate hike on…
GBP Bank of England Deputy Governor Ben Broadbent avoided monetary policy and the economic outlook in his speech yesterday. The markets had re-positioned in expectation of a “hint” over the need for higher interest rates; the lack of comment triggered a significant “correction”. The Pound retreated to below 1.1200 against the…
GBP Sterling continued to ebb against its peers due to a lack of data or news and an underlying lack of confidence in the economic outlook after last week’s poor data. The Pound dipped to lows near 1.2850 against the Dollar before finding support as the Euro tested resistance above 1.1300…