There wasn’t too much to speak of for the pound yesterday as data was a little thin – but there were some gains seen for GBP towards the end of the day’s trading with EUR and USD turning out disappointing data domestically. What we did see from the UK, however, was CBI reported sales numbers for retailers which came in stronger than expected. News like that is certainly a confidence booster and reduces concerns that the UK might be facing a slowdown.
In Europe we saw German IFO data released which is an indicator of the general business climate – data showed that it fell to a 22 month low which is the 6th month on the trot that the Germans have failed to hit their target. With Germany playing such a prominent role in Europe’s wellbeing, any time they’re hit hard it has a ripple effect on the rest of the Eurozone. Problems in the Middle East and sanctions against Russia are cited as some of the main causes for the issue.
The US released services PMI data yesterday which showed a slowdown to a 6 month low this month. The Dallas Fed was also seen to underwhelm for September, coming in at 10.5 as opposed to the anticipated 11, which knocked USD back a bit. On the flipside, pending home sales came in better than first thought. The markets, however, are poised for the US interest rate decision tomorrow which will certainly give some kind of idea as to where the dollar is heading.
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