21/09/2018 - Salzburg Summit Concludes

GBP

Thursday saw the final day of the highly anticipated EU summit in Salzburg, with traders eagerly awaiting any indication of how the Brexit talks went. The key soundbites that came out were mixed for the UK side of the deal, with EU leader Tusk labelling the Chequers plan for trade as “not acceptable”, whilst he later mentioned that he was “a little bit more optimistic” about the chances of a deal being in place. The rather conflicting message was mirrored by currency markets, which remained surprisingly muted as the news was released.

Pound Sterling experienced a surge on Thursday morning off the back of stronger than expected retail sales figures. British retail figures came in at a healthy 3.3%, beating expectations of 2.3%. Sales rose by 0.3% in August, defying the forecast fall of 0.2%. This comes in line with recent data showing the UK performing well in recent months.

Key Announcements

09:00 - EUR: Markit PMI headline figure expected to be lower at 54.4 from 54.5
14:45 - USD: Markit PMI headline figure expected to be higher at 55.0 from 54.7K