A good finish to the week for GBP?
Today, we have more UK data being released which could cap off what has been a pretty good week so far. UK retail sales are expected to have declined by 1% in January. However if you take into account the huge rise in December then this isn’t too bad and would still be a 5% improvement on last year.This is further evidence of improvement in the UK economy. We’ll also find out how much the UK government borrowed in January, a month when borrowing usually drops slightly compared to December. Further highlighting the improving economy this number is expected to be lower than what we have been used to in the last couple of years. Despite the rise of the unemployment rate in January, the Claimant Count Change was better than expected, and this factor could boost consumer demand more than forecasted.
Housing starts and sales data is coming out of the US today although this is likely to be extremely poor with the figures having been severely distorted by adverse weather conditions. So, one would assume the market will take this into account.