There is no relief yet for the British pound which failed to rally for fourth consecutive trading day.
Retail sales doubled expectations, but consumer confidence deteriorated. The UK economy is falling into a black hole and that weakness is being reflected in the British pound. At this point, the UK will need to lower interest rates again in the coming year as the credibility of the country’s new Prime Minister is tested. The recent developments in the UK and the British pound are a perfect reflection of what could be in store for the Euro. If data starts to turn so will market sentiment. In the week ahead, we are only expecting housing market reports from the UK. This includes Nationwide house prices and BBA loans data.