Weekly Roundup: Pound mixed despite persistent UK inflation
Amy Richards October 24th 2023 - < 1 minute read
After an uncertain start to the week, the pound then stumbled on Tuesday after signs of a cooling UK labour market dented Bank of England (BoE) interest rate expectations.
Sticky UK inflation helped revive BoE bets on Wednesday, after the headline rate unexpectedly held at 6.7% in September. However, GBP’s upside was limited as many analysts still expect the bank to leave interest rates on hold.
A lack of data on Thursday led to mixed movement in the pound, with recession fears offsetting BoE bets.
Friday then saw Sterling end the week on a sour note after UK retail sales contracted more than forecast, with new data revealing a 0.9% slump in sales last month.
So far this week, the pound is under pressure after the UK’s PMIs reported that private sector activity remains in contraction territory.
Market-moving economic data is in short supply through the remainder of the week, which could limit GBP movement.
The only other release scheduled for publication is the Confederation of British Industry’s (CBI) distributive trades survey, which is expected to show another decline in sales and could therefore dent GBP.
Written by
Amy Richards