British Pound Drops After Two Winning Sessions
The British pound fell versus US dollar today. The GBP/USD pair is trading at 1.3169 level, having lost 0.10%. Investors are focused on Brexit talks. EU leaders have rejected the latest proposals from British Prime Minister May on Brexit, so negotiations over the UK leaving the EU remain deadlocked. Growing uncertainty whether a deal can be reached by March has alarmed the business sector and could weigh on the British pound.
The growth of British retail sales slowed in September after a stormy summer, but remained strong, indicating that British consumers are not drastically cutting their costs as Brexit approaches. The monthly retail sales index from the Confederation of British Industry (CBI) fell to +23 from +29 in August. The survey of economists showed a larger drop to +16. Consumer spending helped offset a broader slowdown in the UK economy after the Brexit vote in 2016.
Tomorrow, the US will publish Final GDP and durable goods orders and the UK release GfK consumer confidence.