GBPUSD Pound Hits 7-Month High on Strong UK Retail Sales Data

In the UK, there was good news on the consumer front, as retailers reported a sharp increase in sales volume. With Brexit constantly in the minds of the markets, consumer spending indicators are being closely monitored. The British economy has performed better than many analysts (and the BoE) expected, but the markets are understandably nervous about the impact that Brexit will have on the economy, given the fact that the EU is Britain’s largest trading partner. On Friday, the economy will get a report card in the form of Preliminary GDP, and traders should treat this event as a market-mover.

Talks over Britain’s departure from the EU are expected to be lengthy and difficult, and EU leaders don’t appear to be in a generous mood, as they met in Brussels this week to discuss a united front in the Brexit talks. Britain wants any deal to include financial services, but the Europeans are working on a draft that would exclude the financial sector unless it is governed by EU rules.