Pound Consolidates Against Its Major Rivals On Weak Economic Outlook

The pound consolidated against most of its major rivals during the overnight trade as investors continue to sell UK currency on deteriorating economic outlook. Although yesterday’s retail sales data came in better than expected analyst believe that this release is not going to change things fundamentally. Sterling especially remains under intense pressure against the euro on speculation that the Bank of England won’t raise interest rates anytime soon while the European Central Bank continues with its tight monetary policy. BoE Deputy Governor Charles Bean said yesterday that consumer spending will remain subdued for the remainder of the year and the next few years are likely to be tough for UK households. Expect for the pound to remain in current ranges against its major rivals as there are no data releases or policy speeches scheduled for the reminder of the week.