UK’s retail sales figures continue to disappoint

More doom and gloom last week for the U.K. with Retail Sales figures coming in largely under consensus showing a second straight contraction in the figure.UK's retail sales figures continue to disappointIn contrast, as markets continued to soar, we also saw strength returning to the US Dollar after a disappointing start to the week. the

GBP/USD fell below 1.55 for the first time this year. GBP/EUR continued to fall in the opposite direction again struggling to stay about 1.16 and an uneventful week for EUR/USD battling to stay above 1.33.

As the U.K. continues to struggle with high inflation and low to non-existent growth we have Wednesday’s claimant count that is expected to show more positive news on joblessness with the figure contracting again.

Also, the MPC minutes will be released on Wednesday to see the voting from the last interest rate meeting with last week’s inflation report it will be interesting to see if the committee is leaning towards more QE.

Over the weekend, the G-20 Summit in Moscow ended on Saturday with apparent thumbs up for “un-intentional” and no direct weakening of currency rates as part of wider monetary policies.

On the other sode of the pond we have a potentially quiet week this week for the US Dollar with Wednesday’s FOMC meeting minutes being released to see how sentiment is towards the continued monetary policy currently in place and whether or not the Federal Reserve will continue on its current course until the end of 2013.

On Thursday, inflation was expected to have increased with US Existing Home Sales expected to have fallen back again as the property market struggles to get back on its feet.

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