The Bank of England maintained interest rates at 0.75% with a 9-0 vote.

Equities continued to lose ground with the global benchmark index at 15-month lows as markets fretted over the global growth outlook.

Growth concerns also unsettled the dollar, especially with fears that Wall Street losses would trigger capital outflows and expose the dollar to a sustained liquidation of long positions.

In contrast, there was structural Euro support despite the lack of yield support.

The Swedish krona strengthened after the Riksbank increased interest rates.

Oil prices were again undermined by concerns over weak demand and over-supply with only a tentative recovery from 15-month lows.

November UK retail sales increased 1.4% compared with consensus expectations of 0.3% with annual growth at 3.6% from a revised 2.4% previously, although there were seasonal distortions and the CBI reported a sharp dip in sales for December with companies expecting no growth for January.

The Bank of England maintained interest rates at 0.75% with a 9-0 vote. The bank stated that Brexit uncertainties had intensified and that downside risks to the global growth outlook had increased. Headline inflation could decline to below 2.0% early next year given lower oil prices, but domestic pressures were increasing. Overall, a gradual tightening of policy was still appropriate, but GBP/USD retreated from 1.2700 highs.

The government confirmed that the key Brexit vote is due on January 15th as underlying uncertainty remained extremely high. Markets were braced for year-end positioning and a decline in liquidity. According to the latest surveys consumer confidence declined to the lowest level since July 2013 with the Lloyds business barometer at a 30-month low maintaining concerns surrounding the impact of Brexit uncertainty. GBP/EUR traded close to 1.1050 on Friday, although GBP/USD traded above 1.2650 on US losses.

Economic Calendar

09:30GBP Total Business Investment (Q/Q)-1.20%-1.20%
09:30GBP Current Account-21.2B-20.3B
09:30United Kingdom GDP (Q/Q)0.60%0.60%
09:30United Kingdom GDP (Y/Y)1.50%1.50%
13:30USD Durable Goods Orders (M/M)(NOV)1.80%-4.30%
13:30USD Durable Goods Orders Ex Transportation(NOV)0.30%0.20%
13:30USD GDP (Annualized)3.50%3.50%
13:30USD GDP Price Index (Q/Q)1.40%1.40%
13:30CAD Retail Sales Ex Autos (M/M)(OCT)0.30%0.10%
13:30CAD Retail Sales (M/M)(OCT)0.60%0.20%
13:30CAD GDP (M/M)(OCT)0.20%-0.10%
15:00USD PCE Core Price Index (Y/Y)(NOV)1.90%1.80%
15:00USD PCE Core Price Index(M/M)(NOV)0.20%0.10%
15:00USD Michigan Consumer Sentiment(DEC 08)97.697.5
15:00USD Personal Spending (M/M)(NOV)0.30%0.60%
15:00USD Personal Income (M/M)(NOV)0.30%0.50%
15:00BoC Business Outlook Survey--
15:00Personal Consumption Expenditures PI (YoY)-2.00%
15:00Personal Consumption Expenditures PI (MoM)-0.20%

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.