GBP Retails sales to be released but to be overshadowed by the Brexit Summit
UK retail sales Overview
The pound could really do with a surprise retail sales bounce to recover what has been a tough few days of trading. As it stands, however, analysts are expecting a drop from 1.0% in August to -0.1% in September, which would be the worst reading in 4 months.
A positive surprise in the retail sales report could offer fresh impetus to the GBP bulls, taking the rate back towards key levels of higher price points. While a bigger-than-expected drop in the retail volumes would cause a knock-on effect and we could see price drop significantly as the skepticism surrounding the UK economy continues.
However, the reaction to the UK data is expected to be limited, as the main market-moving event for the pound today remains the Brexit Summit, with the UK PM Theresa May’s speech eagerly awaited for some clarity on the Brexit talks.
The leading participants in the Brexit negotiations are likely to announce that there has been slow and insufficient progress to allow the green light of approval between the UK and The European Union