We thought there might be volatility yesterday...and we weren't wrong. The Bank of England did hike the base rate by the expected 0.5% to 3.5%, however that wasn't the whole story. 2 members of the monetary policy committee voted for no hike at all. This caused shockwaves in Pound rates. The Pound collapsed versus most major currencies, but in particular against the Euro.
Retail sales numbers in the UK this morning further compounded the woes. Analysts had expected month on month growth of 0.3%, but the actual number was a contraction of -0.4%. Black Friday didn't seem to take hold this year.
With European inflation numbers later and the Bank of England's quarterly bulletin it could be another difficult day for the Pound.
Other than that it's a fairly quiet day heading into the weekend for scheduled news.
Today’s Economic Calendar
EUR: 10:00 Inflation Data
UK: 12:00 BoE Quarterly Bulletin
As ever we look forward to keeping you in the loop and look out for our next update.
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