Sterling has tanked today, admittedly against a slightly stronger US Dollar.
GBP/USD came under pressure early in the session, falling below 1.23, following the release of weak British Retail Consortium data for September. According to the BRC figures, a lead indicator for official retail sales data, total sales fell 1.3% mom, the largest Sept downturn since the BRC started gathering data 24 years ago. Like-for-like retail sales fell 1.7% mom, with the BRC blaming weak UK consumer demand on Brexit-related uncertainty.
Sterling lost further ground after the Institute of Fiscal Studies published a report forecasting that a no-deal Brexit would see UK debt at a 50-year high and an estimated UK economy £60bn smaller than if Britain had voted to remain in the EU.
GBP/USD has fallen to a one-month low of 1.22 and GBP/EUR dip below 1.12 for the first time in three weeks, amidst reports that EU leaders dislike the PM’s new Brexit deal and measures to circumvent the Irish backstop.
Angela Merkel has reportedly told Downing Street that Ireland would have to remain indefinitely in the customs union in order for the EU to sign off on a Brexit deal, potentially, strengthening Boris’s hand to leave without a deal.
