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Financial market has been in consolidation mode for much of the Asian session as traders await the outcome of a number of key global central bank heads speaking today.
In terms of data releases this morning we have seen better number from the United Kingdom British Retail Consortium sales release for December 2022 earlier today.
Encouragingly, BRC Like-for-Like Sales came in at +6.5% year on year, while the prior reading was +4.1%. Additionally, BRC total sales came in at+6.9% y/y, prior +4.2%.
Data also from Barclays, their December consumer spending measure, which is of course spending on its credit and debit cards, came in at +4.4% year on year.
Analysts also note that both of these sets of data show spending rising slower than the UK inflation rate. The British pound showed only a muted reaction to this morning data.
The Barclays report said that “Pubs, bars and clubs benefited from Christmas parties and football fans watching the World Cup,” according to Esme Harwood, a director at Barclays.
He also noted “However, it’s worth noting that these figures look more positive in comparison to December 2021, as the spread of Omicron kept Brits away from high streets and hospitality venues.”
BOE chief economist Hew Pill also spoke yesterday, and he said that he “Sees risks from higher natural gas prices with a tight labor market, adverse labour supply developments and goods market bottlenecks.”
And “Domestic factors will strongly influence my monetary policy decisions in the coming months” and “If imported gas prices remain significantly higher than in the past, then the threat of second-round inflation effects remain.
This is hawkish commentary from Pill. For the record, the next decision is Feb 2nd, and the consensus is a 69% chance of a 50-bps hike with the remainder at 25 basis points.
Talking of UK, at 4.30 am New York time, which is 0930 GMT, Bank of England Governor Andrew Bailey chairs a panel discussion on central bank independence and the environment, and at an event hosted by Sweden’s Riksbank and Federal Reserve Chair Powell is also speaking later at the same event.
