Pound (GBP) Slips amid Warning Signs in Retail Sector
Despite an initial uptick, the Pound (GBP) weakened overall yesterday. The downside came as markets once again became concerned about the UK economy.
Joules became the latest large company to enter administration, following Made.com last week, as the cost-of-living crisis squeezes the British retail sector.
This morning the UK’s labour market report showed modest signs of a slowdown, with the unemployment rate rising from 3.5% to 3.6%. Meanwhile, wage growth beat forecasts as it continues to climb, keeping pressure on the Bank of England (BoE) to raise interest rates further. This mixed data seems to be weighing on GBP.
Euro (EUR) Wobbles despite Strong Industrial Production
The Euro (EUR) wavered during yesterday’s session, despite Eurozone industrial production expanding more than forecast in September.
Resilience in the US Dollar (USD) may have offset the positive data, due to EUR’s negative correlation with USD. Meanwhile, a risk-on tone in markets saw the safer Euro struggle against its riskier…
