UK Retail Sales boost pound

  • Posted by Shyam Gokani in Uncategorised
  • September 15, 2016
  • No Comments

Sterling rose briefly on Thursday after data showed British retail sales fell at a much slower pace than expected in August, although expectations that the Bank of England is likely to look through the data and keep policy accommodative checked gains.

Retail sales volumes edged down 0.2 percent on the month in August after jumping an upwardly revised 1.9 percent in July, the strongest July performance in 14 years, the Office for National Statistics said. August’s fall was smaller than the 0.4 percent drop forecast by economists in a poll.

Investors focused on the BoE announcement due at 1200 GMT. Analysts expect the Bank’s monetary policy committee (MPC) to reiterate that Brexit uncertainty will drag on the economy as Britain and the EU thrash out a new relationship over the next couple of years. The BoE cut interest rates last month to record lows and reintroduced an asset-purchase programme.

Under the MPC’s new calendar, the Bank’s next rate decision is scheduled for Nov. 3. That is when economists expect it to cut borrowing costs to around 0.1 percent.

Sterling fell before the Retail Sales data as investors awaited the Bank of England announcement on interest rates when it is likely to reiterate that monetary policy will remain accommodative in the coming months.

The pound has broadly stabilised in the past month, holding above 1.30 against the dollar, but more political noise is likely to be generated when EU leaders meet on Friday in Bratislava, where conditions for Britain’s departure from the bloc will be high on the agenda.

The BoE can be expected to hold fire at today’s meeting, It would be wrong, though, to be considerably more optimistic in view of the good economic data following the Brexit referendum.

Leave a Reply

Your email address will not be published.

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and for clients based in the United Kingdom and rest of the world, payment services for Currencies4you are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).For clients based in the European Economic Area, payment services for Currencies4you are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701). For clients based in the United States, payment services for Currencies4you are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York, NY 10011. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. Currencies 4 you's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. | Terms and Conditions | Privacy Statement | Careers