Sterling trades higher despite lack of Brexit progress
The pound managed to trade higher yesterday despite the lack of Brexit progress and an unexpected drop in Britain’s monthly retail sales data. This retail data was particularly surprising given the recent retail news, with the overall sales balance falling to minus 6 in August, way lower than forecasted expectations of plus 8.
Sterling also continues to grapple with the stalling Brexit negotiations, which appear to still be a long way from being resolved. Despite this, the pound gained against the dollar which is continuing to be weighed down ahead of Thursday’s keynote Jerome Powell’s speech.
The dollar was quiet yesterday in anticipation of Thursday’s Federal Reserve Chairman Powell’s speech and the release of US durable goods orders data. The one data release of note was worrying for the greenback, which continued its recent run of losses. Data showed that US consumer confidence had fallen to its lowest level in more than six years due to coronavirus related concerns. Investors are now keenly looking for guidance from Powell, especially in regards to what steps the Fed may take to safeguard a recovery. Many expect the forward guidance to be fairly dovish, with low interest rates for the foreseeable future.
13:30 – USD – Durable Goods Orders (Jul) expected to decrease to 4.3% from previous 7.6%
13:30 – USD – Nondefense Capital Goods Orders ex aircraft (Jul) expected to decrease to 1.9% from previous 3.4%
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