020 7898 0500A flat day for sterling saw the currency trade largely sideways against its major trade partners on Wednesday. With no significant economic data released from around the world, there was little to excite currency markets throughout the day. Public sector net borrowing did give sterling a slight boost, with confirmation of an £8.6 billion deficit coming in well below the £9.7 billion deficit forecast by market analysts. This equated to the smallest UK deficit since 2007, and allowed sterling to remain close to a one-month high against the US dollar.
Today sees the release of September retail sales from the UK, which will give some insight into the current consumer sentiment in the UK. A positive reading is expected for both the month and yearly comparison which could see sterling make some gains ahead of the main event of today – news from the European Central Bank (ECB) later in the day.
