The pound fell against all 16 of the most actively traded currencies on Monday.
The British Retail Consortium (BRC) reported this morning that retail sales fell 0.4% in February against a year ago. February’s fall was the weakest sales performance since April 2010.
Financial services firm PricewaterhouseCoopers (PwC) issued a report suggesting that the Bank of England should not raise interest rates before the economic recovery is secure, despite concerns over inflation.
The British Chambers of Commerce (BCC) are forecasting that the UK economy will grow by less than expected in 2011 but growth in 2012 will be better than predicted.
The Royal Institution of Chartered Surveyors (Rics) report that the UK property market is subdued everywhere except in London in its latest survey. The report also states that the outlook for the housing market was “flat”.
Meanwhile, the US dollar recovered on Monday after falling to a four month low against the euro and a fourteen month low against the pound following Friday’s publication of the latest US jobs report. According to the US Labor Department, the economy added 192,000 jobs in February, up from January’s figure and the best individual month’s figures since May 2010 but below market expectations.
The euro rose above a four month high and touched a 5 week high against the pound after European Central Bank (ECB) chief Jean-Claude Trichet gave a strong hint that the ECB may be ready to increase euro zone interest rates as soon as April despite ratings agency Moody’s cutting its rating on Greece by three notches to B1 amid concerns that Greece will not be able to meet the conditions of last year’s EU/IMF bailout.
Commentary by Tony Redondo
“Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions.”
