Monthly Archives: December 2023

Pound vs Euro exchange rate reaction to tariffs
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Money News Overview Friday 22nd December 2023: UK retail sales rise in November

The final UK Gross Domestic Product release this year, showed the total value of goods and services produced in the third quarter of 2023 decreased by 0.1 percent increasing the likelihood of a recession.

UK retail sales increased 1.3 percent in November, with Black Friday sales boosting this figure.

The total value of sales by retailers in the UK, excluding fuel released at 1.3 percent in December, jumping 0.7 percent from the forecasted 0.4 percent rise.

The Pound has been on a downward trend against the Euro, after UK inflation figures released lower than expected at 3.9 percent earlier this week – placing pressure on the Bank of England to cut interest rates promptly.

This afternoon, there is a mixture of US economic data that investors will keep a close eye on throughout the day.

Pound rises as dollar hits 3-year low
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Money News Overview Thursday 21st December 2023: It’s beginning to look a lot like…rate cuts

The British Pound dropped swiftly following the release of UK inflation figures that were lower than expected, but there are reasons to assume that losses can be limited.

The unanticipated drop in headline CPI inflation to 3.9% year on year was the type of surprise that may significantly impact expectations for the UK economy and interest rates.

Markets anticipate the Bank of England to act quickly to lower inflation, with over 125 basis points of rate reduction expected in 2024, with the first cut priced in as early as March.

US Consumer Confidence Index increased more than expected in December. The index increased from 101.0 to 110.7, surpassing the 104.0 consensus. Existing-home sales unexpectedly increased in November. Both data reports raised expectations that the US economy will continue to thrive strongly in 2024. 

Today’s key data releases are from the United States, in the form of weekly unemployment claims and the Philly Fed Business Survey. However, unless there are any huge shocks, the figures are unlikely to have an impact on markets.