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 – Evens
Humphrey Percy
Mon 11 May 2026
Evens That is the bookies’ betting on PM Starmer being gone by the end of June following the UK Council Elections, which were even worse than had been expected for the Government. Whether that does indeed happen, equity prices are set for greater volatility, gilt yields, and therefore interest rates will likely remain at their […]
Daily Brief – US Cost of Living
Humphrey Percy
Fri 15 May 2026
US Cost of Living If Americans can tear their eyes away from POTUS’ foreign policy sorties being played out around the world on almost a daily basis on their TV screens, they will be focusing on expressing themselves at the now only 6 months away US Mid Term elections. The factor uppermost in the voters’ minds will […]
Daily Brief – Dire Straits
Humphrey Percy
Wed 13 May 2026
Dire Straits A handy ready reckoner for the major straits of the world that see 70% of the global oil trade pass through them: Malacca, Bass, Singapore, Gibraltar, Magellan, Hormuz, Bering, and Bosphorus. It may not add much knowledge to those who have a good grasp of economic geography but it does serve to remind one following the […]
