Jump to content

Where next for GBP as consumer confidence rises but inflation remains a challenge?

Recommended Posts

Despite UK consumer confidence rising to a 10-month high, the Gfk consumer confidence index shows that half of consumers are using savings to pay for everyday items and one in 10 are borrowing to survive.

 Jeremy Naylor | Writer, London | Publication date: Friday 24 February 2023

Consumer confidence rises

After recent signs of improvement in the UK economy, Gfk's headline Consumer Confidence Index has risen by more than expected to a 10-month high in the month of February.

The index increased to a -38 in February from a -45 the previous month. Economists had expected to give rise to a -43, now seven point increase. That's the biggest month-on-month improvement in almost two years.

But there is still a long way to go to the -7 recorded back in February 2020, just before the coronavirus pandemic hit back in 2020.


If we look at what's happening at the moment with sterling, we can see there is a little bit of an uptick at the moment in sterling against the US dollar.

But the problem with this is the reason why we've seen sterling under pressure is really not recovered recently is because the cost of living crisis remains a challenge for UK consumers.

The survey out today shows that nearly half of consumers are now digging into their savings to cover essential costs and one in 10 are taking on debt to pay for essentials.


Quick update on where we are in terms of the move for sterling against the euro. Again, this downward pressure seems to be prevailing. We've got a little bit of gains for sterling at the moment against the euro, but broadly speaking, this is a trend which is a slow grind, lower for sterling against the European single currency.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • This is not an acceptable explanation for me unfortunately, I am fully aware of the need to move spreads and I had accounted for that. Especially at the open of a market, but your spread was totally unreasonable the spread on DEC contracts is already at 130pip standard, to increase it to 400pips and hold it there even after 5 mins of trading. As my execution was a 09:06 the main market volatility had already been accounted for.   So disappointing after 6years being a customer and on a profitable trade as well: 
    • Dear @MB1470, Thank you for your post. Please note that dealing spreads on shares are subject to variation, especially in volatile market conditions or other unusual circumstances.  Market spreads can widen significantly, particularly at the beginning and end of the trading day, and minimum spreads may exist. Thanks, KoketsoIG
    • This morning at the market open on NOVO DEC contracts. On Spread Bet.    the spread moved from 138pips to close to 400 pips? How can this be reasonable the candle is only displayed on a 15-2min time period not on smaller periods. At market open 09:00 ????? How is this even remotely reasonable?     
  • Create New...