GBP/USD holds steady around 1.3375 after testing 1.3446

GBP/USD holds steady around 1.3375 after testing 1.3446 – BBH

GBP/USD is trading in a tight range around 1.3375 after testing an intra-day high of 1.3446 yesterday. UK retail sales unexpectedly declined in November.  Total retail sales volumes dropped -0.1% m/m (consensus: 0.3%) vs. -0.9% in October driven by reduced online demand for precious metals, BBH FX analysts report.

“Real household consumption growth has been stagnant in recent years. Consumption has risen by just under 1% since 2019 Q4. High interest rates have accounted for a large part of the weakness in consumption growth. As such, less restrictive BOE policy should lead to a pick-up in household spending in coming quarters.” Read more…

Pound Sterling trades firmly despite UK Retail Sales drop again

The Pound Sterling (GBP) trades higher against its major peers in Friday’s European session despite data from the United Kingdom (UK) showing that Retail Sales unexpectedly declined in November.

The Office for National Statistics (ONS) has reported that Retail Sales, a key measure of consumer spending, surprisingly declined by 0.1% month-on-month, while these were expected to expand by 0.4%. However, the pace of decline was significantly lower compared to the 0.9% contraction seen in October, which was downwardly revised from 1.1%. Year-on-year, the consumer spending measure grew steadily by 0.6%, slower than the 0.9% projections. Read more…