Retail Sales better than expected
The Pound has recovered most of yesterday’s losses after stronger than expected Retail Sales number were released this morning. The markets had only been expecting a small rise of 0.2%, but the actual number came in at a much more impressive 1.0%. This indicates that consumers are still spending. Retail Sales is a good barometer of the overall health of the economy, so the better result helped the Pound rise. You can see live graphs here.
May suffers defeat; currency markets ignore it
In other news, May lost a series of votes last night as was expected. It didn’t affect the Pound much because it doesn’t really mean anything. The lack of support however means there is no impetus for the EU to make concessions to help get the deal through.
Will a deal be done?
I’m still of the view that they will make the necessary concessions. From the EU’s point of view however, there is little point in doing so now. If they did there is the risk of the UK going back and asking for more. It’s more likely they will leave things until the last minute as the EU has been shown to do in the past. If they do make concessions, parliament have already indicated that they will vote the deal through. This would help the Pound as it would put to bed once and for all any chance of a ‘No Deal’, and both sides could get on with negotiating a trade deal.
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