Good afternoon,
The pound is one of the best performing currencies of the year so far and remains strong after enjoying another positive week, rising to a two-year high against the euro. On Friday, the US released its key retail sales figure which disappointed the markets by falling much more than expected, as surging prices took a big bite out of spending. Retail sales saw the biggest drop in 10 months in December, likely the result of Americans starting their holiday shopping in October to avoid empty shelves at stores.
The report and news of an unexpected decline in production at factories in December also suggested the economy lost momentum at the end of 2021. That trend likely persisted into January amid spiraling Covid-19 infections, driven by the Omicron variant, which have disrupted businesses and schooling.
Today, US banks will be closed in observance of Martin Luther King Day.
Have a great day.
Author: William Jones, Senior Relationship Manager.
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References
https://www.cnbc.com/2022/01/14/retail-sales-december-2021.html
https://www.reuters.com/world/us/us-retail-sales-tumble-december-amid-shortages-2022-01-14/