British Pound Unfazed by Weaker Consumer and Business Confidence

Talking Points:

• British Pound unfazed by consumer and business confidence data showing weaker economic outlook
• Gfk Consumer Confidence Index was unchanged from the prior month, but broadly lower than 2016
• Lloyds Business Barometer fell 5 percentage points to 35, showing less optimistic economic outlook

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GBP/USD was unfazed by the release of UK consumer and business confidence data for the month of March. The GFK consumer confidence index, which measures individuals’ future expectations of personal finances, major purchases and the general economic situation, remained unchanged from the prior month. Most components of the index are reporting readings lower than this time last year, except for the savings index, which is 1 point higher than 2016.

The Lloyds Business Barometer, which measures the total amount of companies with a positive outlook on the British economy, fell by 5 percentage points to 35 percent. Just a day earlier the UK activated Article 50 of the Treaty of Lisbon, officially triggering the process of exiting the European Union (so-called “Brexit”).