Boost in risk appetite helps sterling
UK CBI retail sales retracted sharply in December falling well below forecasts, but not entirely surprising given concerns around Omicron. The data maintained market concern for consumer spending and supply chains, especially with Wales and Scotland imposing fresh restrictions. Irish Prime Minister Martin stated that talks between the UK and EU on the Northern Ireland protocol were on track.
The Prime Minister is expected to announce further restrictions starting Boxing Day or soon after as Scotland announced a further tightening from December 27th. Sterling moved above 1.3250 to the dollar after recovery in risk appetite while the Euro retreated to near 1.1765.
Sterling opens this morning close to 1.3250 to the dollar while the Euro held around 1.1765.