020 7898 0500Sterling made losses against the US dollar but just about maintained equilbrium against the euro. The move was triggered in the afternoon after economic data from the US employment sector was once again more favourable than anticipated. Given the cautious tone from the Bank of England’s quarterly report last week – and the probability of an interest rate hike increase in the US – it could be the case that a new downtrend is being established.
Meanwhile, British retail sales grew more slowly in July than June but, as expected, still posted a 0.9% growth. While this is better than a sliding number, it does highlight consumer’s reluctance to spend in these uncertain times.
It is a quiet day for UK economic data tomorrow, but global economic data could still exert some influence on the pound.
