Sterling was given a needed boost this morning as retail sales figures were released ahead of forecast. Month on month data, although poor, was ahead of the 0.1% expected and came in at 0.3%. As a result sterling pushed through 1.12 against the euro and 1.32 against the US dollar.
Sterling positivity has not been something we have been accustomed to in recent weeks, and this small shot in the arm for the pound could be an opportunity for anyone selling the pound.
Interestingly this morning Mark Carney, the Bank of England governor suggested that the UK economy would have performed better if the UK had remained in the EU, something that suggests, to me, that we could be in for further sterling depreciation as Brexit negotiations continue.
Another area to focus on will be next weeks Budget on the 22nd November, the first time in more than 20 years that the budget has been announced in the autumn and not the spring. It is difficult to know the impact this will have on the pound but it can certainly cause some volatility. Should you have an upcoming transfer to arrange this is certainly one to watch.
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Labels: Bank of England, Brexit, Budget, GBP/EUR, GBP/USD, Pound, Retail Sales, Sterling