GBP/USD rallied in the morning session following positive UK Retail Sales figures. The UK posted a 0.2% figure against an expected -0.2%. Amidst Brexit uncertainty the UK market has remained positive highlighted in the release of this data as consumers continue to support the economy ahead of the looming Brexit deadline (31st October).
Consumer’s day continued into the afternoon as the US also posted positive Retail Sales figures, easing market nerves. Against a previous figure of 0.3% (Sales excluding Auto’s), the US headline figure delivered a month-on-month increase to 1%. The dollar rebounded against the Yen and controlled its losses experienced in the morning following the announcement of UK Sales figures. Despite the surge in retail sales the automotive industry suffered reaffirming fears of markets leading into a potential recession.
ECB’s member Rehn stated the central bank is looking ahead to September whereby new policy measures could be delivered, another optimistic tone from the central bank.
US/China trade tensions begin to weigh on Asian markets as two of the world’s leading economies remain locked in continued negotiations over trade tariffs. Pressure has increased as President Trump announced additional tariffs on China.
Vs 08:00 Yesterday
Today's Market Highlights
A subdued macro data calendar today to close the week. Due are low/mid-tiered releases from the Eurozone and US. US Housing Starts (MoM) and Buildings Permits (MoM).
The afternoon session sees the University of Michigan Consumer Sentiment Index outcome measuring consumer confidence.