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November 2017

Pound upbeat after promising retail sales data

Published: Friday 17 November 2017

  • Pound upbeat after promising retail sales data 
  • Goldman Sachs chief calls for second Brexit referendum
By Michael Hart
 
 
The Pound rallied a little yesterday following slightly upbeat UK retail sales data. Retail sales continued to grow in October easing some of the fears of a plunge in consumer spending. Sales volumes rose 0.3% in the month, much better than the 0.1% consensus. On a quarterly basis, sales rose by 0.9%. The underlying picture is of steady growth and retail sales seem to be more resilient than most anticipated particularly with wages lagging inflation. Consumer spending has been the main driver of UK economic growth since the 2016 Brexit vote. Sterling pushed to 1.12 against the Euro and 1.32 against the US Dollar; which remain at significant levels.

The chief executive of Goldman Sachs has suggested a second EU referendum to confirm there is a consensus in the UK on the “monumental and irreversible” Brexit decision. Lloyd Blankfein was “Reluctant to say, but many wish for a confirming vote on a decision so monumental and irreversible. So much at stake, why not make sure consensus still there?”

On the other hand, UK Brexit Secretary David Davis said that it's "incredibly unlikely" there will be a no-deal Brexit. And he hopes that the next round of negotiation with EU will start before Christmas. But he also warned that "politics above prosperity" in the post Brexit relationship with EU. Davis would want to seek a "deep and comprehensive free trade agreement" with EU and "continued close cooperation in highly regulated areas such as transport, energy and data".
Friday jokes

What breed of dog can do magic tricks?
Labracadabrador…

What do you call a bear with no teeth?
Gummy bear.

Why didn’t the skeleton go to the party?
Because he had no body to go with. 

Today's Major Economic Releases

Market BST Data/Event Previous Expected
EUR 08:30 European Central Bank Draghi Speaks    
EUR 09:00 EU: Current Account 33.3b 30.2b
CAD 13:30 Canada: Consumer Price Index 0.2% 0.1%
CAD 13:30 Canada: Common Consumer Price Index 1.5% 1.5%
CAD 13:30 Canada: Median Consumer Price Index 1.8% 1.8%
CAD 13:30 Canada: Trimmed Consumer Price Index 1.5% 1.5%
USD 13:30 US: Building Permits 1.23m 1.25m
USD 13:30 US: Housing Starts 1.13m 1.19m

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