Morning all, TGIF! We’ve finally seen some impressive top tier data (retail sales) released from the UK to give international business owners (you) an idea as to how we, ‘the public’ feel in light of the current political turmoil. The answer, as a nation we are exceeding all expectations but the market isn’t reacting accordingly. Strange…
As above, we’ve been unfairly languishing at 14 month lows in light of the positive data we’ve been witnessing. It just shows the significance Brexit has to investors, compared to day to day data which normally has a direct correlation to a currencies strength/weakness. A good example is yesterdays retail sales showed just this, in light of the excellent weather and “it’s coming home” fever surrounding the World Cup, which in turn boosted sales, the market didn’t react at all. Looking more like a hard Brexit as each day passes.
CPI figures are set to be released today. As mentioned in yesterdays blog “each way bet,” this will be a key indicator into how the EUR is generally faring with all the background noise currently distracting us all from the pure economic facts.
The dollar has finally pulled back from the incredible rally we’ve seen of late. USD is very much in limbo as China and the USA set to sit down today to thrash out a trade deal, with any luck avoiding a full blown trade war. Further talks will be occurring next week, watch this space.
Have a good weekend.