In the UK:

* Although data recorded a drop in UK retail sales of 0.4% in November, they posted a threemonth gain of 0.7%, the strongest such gain since August 2010. Across the day,GBP enjoyed a rally to a high of $1.5529 against the dollar belying the on-going weakness perceived in the British economy.

* While private consumption continues to stall, the BoE will surely see a growing case for expansion of its monetary policy and the minutes of the most recent policy meeting, due out next week, suggest a growing pessimism regarding the economy, expectation for further QE will surely increase.

* Christian Noyer, head of Bank of France, caused a stir by claiming that the UK should have its credit rating cut from the prestigious AAA before France given the relative deficits, debt,inflation and growth.

* GBP/EUR fell from highs of 1.1939 to 1.868 and back before consolidating between 1.1910 and 1.1920 where it seemed to settle throughout US and Asian Tarding

(more…)