The Pound continued to slide this week as the Brexit shadow gets larger and larger. The dispute which is currently dominating headlines between retailer Tesco Plc and the Unilever group, has added to the reality of possible future post-Brexit negotiations. Unilever are seeking a 10% increase in prices of more than a hundred products to offset the recent exchange rate shift. Also yesterday’s High Court challenge to Prime Minister Theresa May over Article 50 and her plan to leave the EU has hindered the Pound.
Across the pond, the US election continues to heat up. Republican candidate Donald Trump was accused of groping and forcibly kissing them by numerous women. Trump has flagged the prospect of featuring Bill Clinton’s female accusers prominently at campaign rallies. Trumps campaign manager quoted “we’re going to turn him into Bill Cosby”. The third and final US Presidential debate is set to take place on Wednesday, October 19th at the University of Nevada, Las Vegas.
The week wraps up with all eyes on the high tier data from the US. The monthly Retail Sales falls under the markets spotlight again, as we see if consumer confidence will be as positive as the anticipated figures expect. Sales for September are due to jump to 0.6% from -0.3% and could see the Greenback strengthen as a result. In the evening Fed Chair Janet Yellen, will deliver a speech at the Fed bank of Boston. If any clues or hints are given in her speech towards the timing or further actions of the FOMC, this could see volatility for the Greenback as a result.