Is GBP Rolling Over?

Is GBP Rolling Over?

Over the past few weeks, UK data has not been encouraging. Although growth continues to maintain its pace, it clear that inflation is rising threat and the full impact of Brexit exodus has not yet hit the country.

For now, the UK consumer is trapped in a nasty vice between higher inflation and tepid wage growth, creating a troubling increase in credit growth. That’s why tomorrow’s UK Retail Sales could prove key as they shed light on the state of the consumer.

Meanwhile, cable has held up relatively well, mainly as a result of dollar’s recent weakness, but on a relative basis, it’s clearly struggling and having a hard time at the 1.2500 level, a failure there could prompt another selloff by the bears and push it towards the 1.2300 figure.

Chart Of The Day

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