The European session dominated when it came to scheduled event risk Thursday; but the data would ultimately offer little direction. For the euro, the release of strong sentiment indicators was quickly offset by a sharp drop in retail sales. According to the European Commission’s statistics, consumer confidence in the Euro Zone rose to an 18-month high and the outlook for the economy was as bright as it has been in the same period. However, how much does that mean when actual consumer spending for the region plunged 1.2 percent through November – matching the worst slump on record. The conditions for the pound were the same; but the potential was greater. Some believe the economy is at a turning point; so now would be the time for the central bank to start raining in stimulus to support its financial markets. Yet, in the end, the MPC would change neither the bond purchasing program nor their outlook for stimulus; leading the pound to a drift through Thursday’s close.
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