Sterling was unable to make any headway against the dollar during the European session on Monday, but it was able to strengthen against the Euro for the sixth successive session as the single currency dipped to lows around 0.8460.
According to data from Visa, UK consumer spending slowed to a five-month low of 0.4% in January from 2.5% in December, maintaining expectations that underlying consumer spending will slow during 2017.
The latest UK consumer inflation data will be watched closely on Tuesday and a lower than expected reading would dampen expectations surrounding the need for higher interest rates while any move in the headline rate to 2.0% or higher would increase speculation that the Bank of England could be pushed towards an earlier than expected tightening.
Sterling was able to hold above the 1.2500 level against the dollar on Tuesday with a firm underlying tone
Related Insights
Daily Brief – Canola for Cars
Humphrey Percy
Mon 19 Jan 2026
Canola for Cars That was the deal struck by Canada’s Mark Carney with China’s President Xi on Friday evening in Beijing. The China tariff until then on canola oil imported from Canada was 85% but that will fall to 15% and in exchange Canada will levy a mere 6.1% on the imports of Chinese electric […]
Daily Brief – Chancellor Reeves
Humphrey Percy
Wed 5 Nov 2025
Chancellor Reeves Market observers were no better informed at the end of the Rachel Reeves speech than they were at the outset yesterday morning. The only surprise was that having comprehensively floated options in the past two months for inclusion in her November 26 Autumn Statement, that the Chancellor should have elected to speak at […]
Daily Brief – British Pound
Humphrey Percy
Mon 12 Jan 2026
British Pound In case you missed the beginning of this month, GBP had a moment in the sun but has since slipped back. Without overthinking it, we have GDP figures on Thursday this week which will show how productive the UK is and Employment figures next week which will be the key indicator for whether […]
