The pound quickly got over the shock of March’s far worse than forecast retail sales reading – which fell from 0.8% to -1.2% month-on-month – investors seemingly dismissing the number as an anomaly due to the impact of the ‘Beast from the East’.
Though last month’s severe weather has had an undoubted impact on retailers – just look at Debenhams' (LON:DEB) 84% plunge in pre-tax profit, a drop informed, if not solely, by the ‘Beast from the East’ – sterling wasn’t particularly bothered. After an initial wobble the currency settled back above $1.42 against the dollar, while against the euro the pound actually improved, erasing its early losses to rise 0.1% at €1.148.
Still, the pound’s relative meekness freed up the FTSE to add a few more points to yesterday’s rebound; the UK index rose 0.2% as the day went on, climbing towards 7340 to sit at a fresh 10 week-plus high. Over in the eurozone things were broadly similar, with the DAX flat below 12600 and the CAC up 0.2% and teasing 5400 for the first time since the start of February.
Turning to this afternoon and Thursday’s sluggish trading is unlikely to be changed by the Dow Jones, which is set to start the US session flat just below 24750. In terms of what could move the needle, there’s appearances from FOMC members Lael Brainard and Randal Quarles, the Philly Fed manufacturing index and the usual Thursday jobless claims.
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