The Pound strengthened yesterday morning after Retail sales beat forecast, revealing shoppers hit the high-street again after holding back in January.
In recent months’ consumer spending has driven the economy, we saw this again with yesterday’s figure showing households spending more on food and on clothes shopping on the high-street.
The Office for National Statistics (ONS) did however reveal signs that higher fuel prices have begun to hit shoppers' pockets. Fuel prices in February were 18.7% higher than a year earlier. As price rises accelerate, wage growth is weakening, meaning that household finances are likely to come under increasing strain in the coming months.
The Dollar lost ground when new US jobless claims rose unexpectedly last week, representing a departure from other data showing a solid labour market.
Filings for US unemployment benefits rose to a seven-week high. Recent data has revealed hiring managers have been slow to dismiss workers as the labour market tightens and job vacancies become harder to fill with skilled and experienced employees. Companies also have been adding to payrolls at a healthy pace and gradually increasing wages.
13:30 – USD – Core durable goods orders is expected to increase to 0.5%