The Pound fell after the retail sales report. Overview for 19.10.2017

19.10.2017

The GBP/USD pair is falling on Thursday afternoon after the United Kingdom reported on the Retail Sales.

On Thursday, the British Pound is falling against the USD. The current quote for the instrument is 1.3147. After making a short pause yesterday, “bears” are back to pushing the pair downwards.

The statistics showed that the Retail Sales in the United Kingdom lost 0.8% m/m in September after adding 0.9% m/m in the previous month and against the expected reading of -0.1% m/m.

One of the most probable reasons are the warm weather in London last month and the exchange rate volatility.

Bloomberg, one of the largest news agencies, is publishing the “Brexit Bulletin” featuring the latest news related on the issue. In today’s review, they say that the Prime Minister Theresa May will once again use a dinner in Brussels to push for a breakthrough in Brexit talks. She wants to move on to the next level in negotiations with the European Union, but European representatives may postpone them until early December at least. All Brexit agreements have to be singed before March 29th 2019, the Brexit day. At the same time, the EU insider says that the chances of starting trade talks by year-end as only 50-50. It‘s not the best piece of news for May and the Pound.

However, there are three issues where the EU wants to see sufficient progress before staring trade talks: the EU citizens rights (although May has written letter to EU citizens reassuring them they can stay), financial settlement (the most complicated matter), and the aspect of using Irish borders as borders between the UK and the EU after the Brexit. These topics may take much time to discuss and negotiate and it’s highly likely that the trade talks may really be postponed for several weeks.

 

RoboForex Analytical Department

 

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