GBP – EUR Centric Shadows Confront Sterling

The Sterling found itself under the dark shadows of a EUR centric downturn on Friday. While the GBP did not lose quite the same percentage that the EUR lost to the USD, the Sterling nonetheless was under pressure. The Halifax HPI was released on Friday and was disappointing with an outcome of minus -0.4% compared to the expected gain of 0.3%. Today the BRC Retail Sales Monitor will be published and the previous report produced a mark of minus -2.3%. Over the weekend the new coalition government led by the Conservatives began to outline cuts in spending that they claim will be effective in making the U.K. fiscally sound. Like all of their major counterparts, the economy of the U.K. faces many questions and plenty of doubters. The GBP is again near the lower end of its range against the USD and it likely will be tested in the next few trading sessions.

Written by