December’s retail sales data has disappointed expectations, encouraging a sell-off in the Pound Sterling throughout today’s trading session. Snapping a near-perfect week of gains for the domestic currency, the Pound traded at times on half of one percent weaker on an intraday basis. The headline figure of house hold goods was down some 2.3% with sales for the period of Q4 registering a 0.2% fall. From a technical perspective it is arguable that the Pound was due a correction following sharp appreciation based upon fundamental changes to the macroeconomic environment. However, it is largely undisputed that the damning picture painted by the data has generated a gradual headwind to today’s trade. The FTSE100 has rallied admirably today in the face of a weaker Pound Sterling despite the underwhelming retail performance. British Prime Minister Theresa May has a challenging weekend ahead of her before she presents her plan, or rather plans, ‘B’. Voting will not be held on May’s alternatives before the 29th January, however, make no mistake, financial positioning in the foreign exchange markets will be virtually instant as participants express their feeling about the permissibility and productivity of plans at the time of unveiling. May has held conversations with her European counterparts with limited reported concession building taking place, leaving Sterling unable to secure another winning day.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Forgiven
Charles Porter
Tue 10 Mar 2026
Forgiven Even with an equity correction underway at the start of yesterday’s session, it still appeared that the market was under-pricing the risk of a protracted conflict in the Middle East. FX and fixed income asset classes had reacted more severely with stronger defensive bids into currencies including the Dollar and Franc, but still the […]
Daily Brief – Fade America
Charles Porter
Thu 26 Feb 2026
Fade America There have been times during Trump’s second term that have had markets and financial commentators alike calling for an era of ‘sell-America’. Sell-America is the notion describing a scenario in which investor sentiment sours towards the US so much so that valuations across US assets decline. This is a unique scenario because many […]
Daily Brief – Sell first, question later
Charles Porter
Thu 5 Mar 2026
Sell first, question later The jury is still out on whether the initial “sell everything” reaction to a sudden increase in geopolitical risk has concluded. Certainly, some volatility remains which serves as an indication that trading conditions have not calmed whilst markets continue to question how this chapter of US military intervention ends. Emerging markets […]
