GBP Looking Good
GBP rose yesterday on the back of surprisingly strong retail sales for February as it appeared that the wet weather didn’t stop the Great British Public from spending their hard earned money on the high streets. We have GDP and Current Account figures out this morning and if these are positive then we could see the Pound extend its gains as even though these are normally ignored, further positive news is likely to be embraced by the markets.
The Euro, on the other hand is declining as the speculation continues about whether or not the ECB will ease monetary policy. Yesterday seemed like Groundhog Day as another Central Bank Committee member commented on how they were taking deflation seriously and would not be afraid of reacting to market conditions. This, combined with worse than expected consumer spending in France and retail sales in Spain, doesn’t make good reading for the Euro.
In other news, the clocks go back on Sunday and its also Mother’s Day so dont forget to send a card and buy some flowers. Have a good weekend.