British Pound Stays Firm Despite Decrease of IMF’s Growth Forecasts
The US dollar remains weak, despite the fact that the House of Representatives supported the tax reform of Donald Trump. The Japanese yen remains the weakest major currency. The yields of government bond of Germany continue to grow, and 10-year bund yield increased by another 3 points to 0.41%. The British pound remains stable, despite a decline in the IMF's growth forecast.
The International Monetary Fund lowers growth forecasts in the UK, referring to the uncertainty of Brexit. Growth for 2017 was reduced by 0.1% to 1.6%, and it is expected, that it will be slowed to 1.5% in 2018. The IMF also expects that a new trade deal with the EU will help restore productivity in the UK and help improve living standards.
Wholesale sales in Canada grew by 1.5% in October. The balance of retail sales in the UK from the Confederation of British Industrialists (CBI) fell to +20 in December from +26 in November, according to the forecast of economists.