UK Pound Loses Ground After Confidence Report

After a good day yesterday, the UK pound is losing ground today. The latest consumer confidence report has been released and morale is down, brining the sterling down with it.

Yesterday was a good day for the UK pound, with the latest retail sales data, including a robust Black Friday, driving gains. Positive data sent the sterling higher against the euro and the dollar.
All of that is changed today, however. The pound is losing ground against many of its counterparts through a combination of profit taking and the fact that UK consumer confidence has taken a hit. The government has released numbers that show that confidence is down to -4 in December. Many analysts and economists had expected an improvement from -2 in November to -1. This setback surprised many, and now the sterling is losing ground.
Against the euro, the sterling is also seeing extra trouble, since the latest German Ifo data is encouraging the 18-nation currency to move a little higher after some days of difficulty. US PMI is in focus next, and some expect to see more trouble for the pound.
At 11:33 GMT GBP/USD is down t 1.5631 from the open at 1.5673. EUR/GBP is up to 0.7849 from the open at 0.7839. GBP/CAD is down to 1.8118 from the open at 1.8177.

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