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Yesterday’s resignation of Sir Ivan Rogers, the UK ambassador to the EU, reinforced uncertainties surrounding Brexit. In his valedictory letter to staff he hinted that the government was guilty of muddled thinking, that the negotiating experience required for Brexit was in short supply, and that ministers needed to hear “the…
The Pound dropped just before the Christmas break as investors sold Sterling. Against the Euro, the Pound hit lows of 1.1630 but the Euro struggled to maintain its strength for long. There was a similar story versus the Dollar, falling as low as 1.2208 and peaking at 1.2379. There are…
UK retail sales data hit expectations with a 0.2% monthly increase, but the annualised rate dropped to 5.9% from 7.2% previously as overall spending held firm. As expected, the Bank of England (BoE) held interest rates at 0.25% and the forward guidance revealed a fairly neutral stance. Sterling’s recovery could…
US retail sales data printed at 0.1% up in November, missing expectations of a 0.3% gain. Industrial production data also fell short, but PPI data was stronger than expected with a 0.4% increase in headline and core readings. As the data preceded the interest rate decision, there was muted impact…
The Pound traded within a tight range yesterday with slightly more than 0.50% between the high and the low against both the US Dollar and the Euro. Yesterday’s UK CPI inflation data showed an increase to 1.2% for November from 0.9% the previous month. This was just above what the…
Sterling held above 1.2550 against the Dollar and gradually moved higher to peak in the 1.2700 area where there was significant resistance. The Pound was the top performer due to the latest comments from the UK Chancellor of the Exchequer Hammond, who made a case for a ‘Slower Brexit’, and…
The UK trade data showed that the deficit narrowed to £9.7 billion for October after record export data, but an upward deficit revision to £13.8 billion for September had reduced confidence in the quality of the data released, and consequently the trade outlook. There was an increase in consumer inflation…
The European Central Bank (ECB) announced an extension in the bond purchase programme until December 2017. From April 2017 to December 2017 the monthly purchase amount will be cut from EUR 80bn to EUR 60bn. Technical changes were made to the programme including the ability to buy bonds which yield…
The UK industrial production data was much weaker than expected with a 1.3% decline for October. This was the sharpest fall for four years and followed a 0.4% drop the previous month. Sterling fell on the news, but there was support just below the 1.2580 level against the Dollar and…
The Pound attempted to capitalise on two-month highs against the Dollar, just peaking above 1.2760 yesterday and held steady above 1.1850 for most of the day against the Euro. There were big revisions to the UK current account data with a lower deficit for the first half of 2016, but…