Sterling creeps higher in subdued market conditions…
The pound slowly edged higher yesterday as hopes for a solution to Brexit derived from next month’s general election rise. Sterling gravitated toward the $1.29 and €1.17 handles against both the greenback and single currency, respectively. This is despite a softer UK retail sales report which, as expected, did nothing to influence the pound’s trading direction.
This week’s major development on the UK political-front was a move by Nigel Farage to not run candidates in 317 Conservative seats which were won at the 2017 general election. This is perceived to have increased the chance Boris achieves a majority and one which would be able to pass his Withdrawal Agreement Bill before the 31st January 2020 deadline. As a result, the pound has found some enhanced support but nothing too dramatic, it’s only gained just shy of 0.45% against its major peers this week.
Today’s calendar is free from any UK economic numbers for the first time this week. Instead focus shifts over to the eurozone and US. October inflation data will be on tap from the eurozone at 10:00. This is followed by a number of afternoon releases from the US including: retail sales, industrial/manufacturing production and business inventories.
Have a good weekend.
Written by Viv Savani. 8:36am, November 15th 2019
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