Last week was challenging for Sterling, with disappointing data culminating in weak retail sales figures. This pushed GBPEUR to 1.18 and GBPUSD to 1.21.

We have seen GBP taking further losses in Friday’s morning session against both the EUR and USD after UK retail sales were released this morning. British retail sales were expected to increase by 0.4% in December.

Pound Sterling has lost further ground against both The Euro & US Dollar this morning after it has emerged that UK GDP figures in November undershot expectations of 0.2% growth, only growing by a meagre o.1%. 

Please remember that before you submit your Personal Income Tax (IRS), you need to perform some tasks as per the new habits acquired in the previous years: tasks like validating or registering invoices at the tax portal are now procedures that became part of the routine of any taxpayer.

Pound Sterling has had a bit of a reprieve this morning with December Inflation figures coming in surprisingly lower than initial forecasts had predicted.

Yesterday saw UK bond yields grow additionally to 5.47%, a level we haven’t seen since back in 1998 – causing further weakness to GBP – especially to the USD which reach levels that hasn’t happened since back in October 2023.

The first full week of the year was not short on volatility, with bond yields in the UK surging beyond 5%. This sharp rise reflects investor concerns about the UK Government’s ability to manage its debt and potential overspending.

Pound Sterling has lost ground by over 1% against the majority of currencies after it emerged yesterday that Government debt and borrowing costs have risen to their highest levels since 1998. This has seen bonds rise to similar levels of the infamous Lizz Truss budget and has sent markets tumbling.