Published: 19/01/2024 By ECAP
The British Pound fell against the Euro, Dollar, and other currencies this morning after UK retail sales for December disappointed. The soft sales speak of a consumer that continues to struggle under the weight of months of extraordinary inflationary pressures and rising interest rates. Although inflation is coming down, prices continue to increase, albeit at slower rates.The Euro lost further ground yesterday after the ECB minutes were released, showing that June would be the earliest they might know whether inflation had been controlled. On that note, ECB President Christine Lagarde hinted at possible rate cuts at the World Economic Forum in Davos yesterday. Lagarde reiterated that interest rate cuts might be on the table by the summer, but the central bank remains data-focused.
The U.S. Dollar fell slightly in Asian trade but remained close to an over one-month high hit earlier this week. Strong retail sales data and a series of hawkish-leaning comments from Fed officials this week spurred increasing doubts that the Fed will begin cutting rates by as soon as March 2024, therefore pushing the greenback higher.
Data supplied by GC Partners