The trading week in the UK has so far been building up to the release of retail figures for June, which were released this morning. The numbers smashed expectations and shows that the retail sector in the UK has beaten what analysts were predicting from the release this morning. Naturally, after lockdown where there were only online retailers and grocery stores operating, the figures were going to be an improvement, however traders were not expecting to see double digit growth.
As always, the Brexit negotiations threw a spanner in the works, giving GBP yet more weakness to contend with. A source involved in the talks said they had stalled and the two sides were once again clashing on their demands. Michel Barnier, Europe’s chief negotiator, also said in his statement yesterday that the EU could survive with a ‘No Deal’ Brexit scenario.
Unfortunately, for sterling it has been the same story and it cannot gain traction against the strong euro. After the agreement was reached in Brussels Tuesday, the spotlight has well and truly been on the single currency as it continues to go from strength to strength this week. Currently sat at just over 1.16 against the US dollar and sub 1.10 for GBPEUR, with positive PMI data having been released this morning, it will be a test to see if those gains can be held heading into the weekend.
The US dollar continued to lose ground against a host of currencies, with weaker than expected jobs data released yesterday. With their own PMI data releases this afternoon, 2pm BST, the dollar could claw back some of the losses which it has seen this week.
Have a great day.
Author: Jack Nicholls, Relationship Manager
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