GBP/USD is drifting in Friday trade. With an abbreviated trading day in the U.S., I expect the lack of movement to continue until next week. Early in the European session, the pair is trading at 1.2909, unchanged on the day. There are no major events on the calendar.
British Consumers Remain Pessimistic
With the Brexit cloud hanging heavy over the U.K, and with the country headed to a snap general election in two weeks, uncertainty and pessimism continue to grip the British consumer. GfK Consumer Index was unchanged at -14 pts, matching its weakest level in 2019. The index has been in (negative) double digits throughout the year, pointing to pessimism. This has had a negative impact on consumer spending, which is a major driver of the economy. In October, retail sales, the primary gauge of consumer spending, declined 0.1 percent. Retail sales has failed to post gains in three months – if this trend continues, the pound could respond with losses.