UK Consumer Confidence Drops Following Election

Talking Points:

• UK consumer confidence at lowest since Brexit referendum after UK election
• Lloyds business barometer suggests firms optimistic about 12-month outlook
• British Pound little-changed as markets digest hawkish Carney commentary

What do retail traders buy/sell decisions say about the British Pound trend? Find out here !

The British Pound shrugged off a drop in consumer confidence registered in the aftermath of this month’s UK snap election. A sentiment gauge from GfK unexpectedly fell to the lowest level since July 2016, when it plunged following the shock outcome of the Brexit referendum.

Separately, Lloyds Business Barometer – a measure of companies’ mood – edged narrowly higher in June after plunging to an eight-month low in the prior month. Firms’ assessment of current conditions soured but the outlook for activity over the coming 12 months posted a significant improvement.

The British Pound looked through the mixed cues on offer as prices digested gains triggered by seemingly hawkish comments from Bank of England Governor Mark Carney. Those sent Sterling to a three-week high against its major counterparts.