13 Jan 2014
Flash: UK data insight – RBS
FXstreet.com (Guatemala) - RBS strategists commented on Friday's soft looking industrial production and construction data.
Key Quotes:
“…the data suggest that the UK economy ended 2013 with a moderation in growth. RBS Economics believe it could be as low as 0.6% q/q, with downside risks. A 0.6% outturn would hardly be a major cause for concern – this would be a trend-like pace of expansion – but it would symbolise a less apparent UK outperformance in terms of the high-frequency data. The biggest gap in the data is on services”.
“December retail sales on Friday for the key holiday season will help plug some of the holes. Given recent negative media stories about household finances and mixed company reports, GBP is likely to be more sensitive to a stronger number than a weaker number relative to the consensus”.
“This week's CPI report will inform on how much wiggle room the BoE has on its dovish guidance. A higher number should play GBP positive and vice versa”.
Key Quotes:
“…the data suggest that the UK economy ended 2013 with a moderation in growth. RBS Economics believe it could be as low as 0.6% q/q, with downside risks. A 0.6% outturn would hardly be a major cause for concern – this would be a trend-like pace of expansion – but it would symbolise a less apparent UK outperformance in terms of the high-frequency data. The biggest gap in the data is on services”.
“December retail sales on Friday for the key holiday season will help plug some of the holes. Given recent negative media stories about household finances and mixed company reports, GBP is likely to be more sensitive to a stronger number than a weaker number relative to the consensus”.
“This week's CPI report will inform on how much wiggle room the BoE has on its dovish guidance. A higher number should play GBP positive and vice versa”.