The British monthly GDP is announced on Friday at 09:00 MT time.
In August British consumers spend more
In August, UK shoppers stepped up their spending at the fastest tempo this year, excluding a soar in April generated by the Easter holiday. However, there’s little indication yet that the squeeze on spending is going down, as retailers told on Tuesday.
Evidently, retail sales leapt by an annual 1.3% on alike-for-like basis, as the British Retail Consortium informed.
Surge in total sales in August turned to be the highest non-Easter outcome of 2017, ascending by 2.4%, speeding up from a leap of 1.4% in July.
Non-food sales are still at levels observed two years ago. Obviously, firm food sales mostly reflect ascending prices, with surge in volume terms weaker compared to the previous year, as the BRC told.
A steep drop in the value of the British pound since the Brexit vote in June last year, combined with poor hikes in pay, has drastically affected the spending power of households in United Kingdom who are the number one drivers of the UK economy.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.