020 7898 0500GBP continued its decline yesterday as UK inflation data underwhelmed the markets. Although the July consumer price index rose in line with expectations from 2.4% to 2.5%, many analysts were hoping for a more impressive number to help lend support to the pound given its weakness. This would have come in the form of expectations around a future interest rate rise, but with mixed data, Brexit and global risk so prevalent, this is now looking highly unlikely in 2018.
Looking to today, eyes will be on the UK’s retail sales to gauge the
health of the high street and consumer spending. Last month’s print saw a surprise month on month fall of 0.5%, so a positive number will be very much needed to promote confidence in the allied retails sector. Expectations are for a positive increase of 0.2%.
Whatever retail sales might bring, with inflation and wage growth figures behind us, sentiment around the UK and the pound are likely to be dominated by the ongoing global events.
