A quiet end to the week
Sterling eased back down from its highest levels against the euro yesterday and has opened at these lower levels today. This morning’s Retail Sales for October, the only top tier economic data released today, were slightly better than expected, and September’s were revised higher.
GfK also reported that November consumer confidence was on the rise in contrast to expectations. When taken together, these figures should put more pressure on the Bank of England to raise rates next month.
Over the last 24 hours, the euro has been reclaiming some of the ground it gave up to both the dollar and sterling this week as traders take their profits off the table ahead of the weekend. Just after this note reaches your inbox, European Central Bank President Christine Lagarde is delivering a speech.
The ECB’s Phillip Lane and Isabel Schnabel are also slated to deliver speeches later. Just in case that’s not enough of Christine Lagarde for a Friday, she will be on her feet again early this evening.
There was a lull in the buying enthusiasm for the greenback yesterday as the market started to look forward to the weekend. Next Thursday, the US celebrates the Thanksgiving Day holiday and, for many, an extra-long weekend. Ahead of a busy few days of shopping and preparation and with no macroeconomic releases scheduled, a quiet Friday looks on the cards.
There are speakers from the Federal Reserve, Christopher Waller and Richard Clarida, to listen out for who will no doubt be sharing their thoughts on inflation when they speak this afternoon.