Analysts point to consumer activity as a key statistic to watch going forward. “If we see consumption pick up, there will be less chance of a rate cut,” Mazanec says.
In August, the British Retail Consortium (BRC) retail sales data revealed a jump in total sales to 2.9 percent, a 0.9-percent increase over August 2004. Aggressive discounting was given credit for the jump, the BRC said.
However, those numbers are down significantly from year-over-year growth figures of more than 7 percent, which were common in mid-2004. Gain Capital’s Dolan advises traders to monitor UK inflation data and retail sales numbers.
“The next piece of data that shows a slowdown in inflation or a drop in retail sales will reignite the easing debate and quickly knock sterling down,” he says.
Subscribe to:
Post Comments (Atom)
Post a Comment