“A lot of our biggest buyers of dollars are just waiting to see where it goes. They have put on protective trades with stop losses in the 1.20s … betting on the pound to go higher.”
Richard de Meo quoted in Reuters
A resounding UK Retail Sales figure of 2.3% for the month of April will surely give some respite to the Bank of England and its policymakers.
The tide is appearing to shift for the bloc state as the macro-picture in the eurozone is settling on steady ground, especially with Mr Macron now at the helm in France.
Annualised CPI rose to 2.7% last month, the highest in over 3 years, in what will be unwelcome news to Bank of England governor Mark Carney.
The Fed were issued a reality check this afternoon as Inflation and Retail Sales levels both disappointed, showing that whilst the US economy is front-running on a global scale, progress is not without stumbling blocks.
Richard de Meo discusses the Bank of England MPC rate decision.
Preoccupation with the French elections and political jostling on the domestic scene have caused UK monetary policy to slip from the forefront of market consciousness.
The US jobs report delivered strong headline numbers but saw dollar selling in the aftermath as each data set was undermined by a negative tone.
Alex Lydall, Head of Dealing at Foenix Partners, provides an update on recent and upcoming market events.