Pound Higher Despite Confusing Consumer Confidence Reports

The Great Britain pound advanced despite the consumer sentiment report was negative today. On the other hand, yesterday’s report showed positive developments, making traders confused. The explanation of the difference could be that one report is for December and another is for November.
The Nationwide consumer confidence index rose from 36 to 40 in November from the preceding month. The GfK index dropped from -31 to -33 in December, the lowest level in almost three years. Nick Moon, Managing Director of GfK NOP Social Research, commented:

Optimism has not been lifted by pre-Christmas spending and it is hard to see grounds for a recovery in confidence in the near future. The eight per cent drop in the score for the general economic situation over the next 12 months is significant and will make chilling reading for the Government and British businesses.

GBP/USD rose from 1.5661 to 1.5772, but then retreated to 1.5693 today as of 13:07 GMT. GBP/JPY traded at 122.12, following the advance from 121.97 to 122.56.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

40 + = forty two