Nothing spooky on the cards for Friday the 13th
With the European Central Bank beginning its asset purchase programme there has been a significant spike in the retail sales figure – a rate of 3.7%! This is the highest since 2005 and can be seen as a great lead in factor for pressure on prices which any nation would be grateful for in this environment. Part of this was car fuel sales, putting on a huge growth figure in this category – I guess I would be out in my European car with low gas prices too.
We have seen a volatile week for the GBP, new highs in GBP/EUR rate before a sharp turnaround and as I write now we are struggling to remain over 1.4000. Against the USD, too, the GBP has been cowed to remain under 1.4900, and so there could be opportunities for those who have had to wait to buy GBP during the one way onslaught we have seen recently. These pullbacks can be, in part, attributed to unexpected falls in production so we will be watching for these to perform better during the coming months.
Data set to be released today really only concerns the CAD with jobs information from them and then we look to the States to view their Producer Price Index. This could be a little more important than perhaps it might ordinarily be due to Producers passing on any changes in costs to consumers and thus getting a leading indicator of inflation for the market to interpret for an interest rate play.