What a week for Sterling, fortunately there is no UK data out today to further aid it's fall from grace.
The Inflation Report the week, amongst other things, has wounded the pound & even though the data coming out from Europe & the US paints a very similar picture, Sterling is coming off by far the worst.
Gone are the days where Brits head off for a cheep pre Christmas shopping trip to Europe or The States. With GBPUSD currently trading around 1.4850 & GBPEUR around 1.17, Tour Operators will have to offer some fairly big carrots to make a weekend trip to New York look like a good idea.
It is the gathering of the G20 this weekend, where they will be discussing the state of Global Economy. The release yesterday of the OECD economic forecast showing a further downgrading of the outlook for the US, Japan & the Eurozone & the lack of any positive news stories to latch onto, the G20 will be feeling under considerable pressure to do more to assist & bring some good news to what is gloomy market.
The form the assistance will take & whether the approach will be a coordinated one, remains to be seen.
US retail sales figures are out today & are unsurprisingly expected to see a drop of around 2.1% & with the Michigan consumer sentiment expected to downward movement also, there is little in the way of positivity either for the US as they go into the weekend.
After what has been a fairly down-beat week we look to see what measures result from the G20 meeting & what this will mean for the markets on Monday.
Michael Corcoran |Treasury Solutions | nabCapital