By Matthew Vassallo
Sterling has taken another hit this morning, following a sharp fall in UK Retail Sales figures for August.
Sales fell by 1.6%, which was far higher than analysts had predicted, with the Pound immediately coming under pressure against both the Euro & US Dollar.
By the opening of bell of UK trading GBP was already down almost a cent against both currencies, with investors once again selling off their Sterling positions in haste.
These figures make for grim reading and only serve as further evidence as to the current state of the UK economy, which is under ever increasing strain due to the continued rising cost of living.
The spiralling household costs have been accelerated due to the current inflation figures, which remain at a 40 year high. Add to this the intensifying strain being put on the global economy due the ongoing war in Ukraine, uncertainty, and rising industry costs due to Brexit, and its clear to see that the Pound is currently fighting an uphill battle.
This morning there have also been multiple reports of a meeting between Russian leader Vladimir Putin and Chinese President Xi Jinping in Uzbekistan. The two authoritarian leaders met to discuss multiple issues and whilst the Chinese leader did not publicly advocate nor denounce Russia’ on-going invasion of Ukraine, his comment that China is “ready to work with Russia in extending strong support to each other on issues concerning their respective core interests” is unlikely to breed confidence amongst Western leaders.
With the UK currently in a state of nation-wide mourning following the passing of Queen Elizabeth II last week, the countries focus will remain on this ahead of her state funeral this coming Monday.