This morning we see the retail sales figures released for the UK. Expectations were that it would continue to drop off, especially after seeing inflation levels stay above the 10% mark earlier in the week.
U.K. retail sales dropped 0.9% during March, more than expected, as high inflation curtails household spending, having a negative impact on Sterling as prices dropped.
Moves are limited; however, analysts say the data are unlikely to dissuade the Bank of England from raising rates next month. The Bank of England is far more interested in inflation and this week's sticky readings point to a 25 basis-point hike on 11 May.
USD has moved slightly higher against major currency pair such as GBP and EUR this Friday morning after growing expectations that the Federal Reserve will have to tighten monetary action next month judging by that inflation is still a big concern. If the USD don’t drop off throughout the day, it would be its first weekly gain for the DXY in five weeks.
Leading us on to this afternoon and we have PMI figures from the US, which should give us a good indication on how the US economy is performing and an overview of the overall economic health.
