Vive la Revolution
2017 is a critical year for European politics not to mention the triggering of Article 50 and Trump.
For some reason the tune of Simon and Garfunkel’s “Slip Slidin’ Away” keeps ringing in my ears… to think that GBPUSD reached post-Brexit highs last week, yet now languishes at five week lows might have something to do with it!
UK retail sales figures were weaker than expected in March with headline sales falling 1.2% m/m against a consensus of -0.6% (Investec -1.2%).
The big news yesterday came as figures from the Office for National Statistics (ONS) showed that CPI inflation had eased to a one-year low of 2.5% in March from 2.7% in February.
UK figures published yesterday morning pointed to a further tightening in labour market conditions overall.
Last week the pound was one of the top performing G10 currencies, as Donald Trump’s tweets and the dovish account of the March European Central Bank meeting led investors to buy it against both the dollar and euro.