CURRENCY SPOTLIGHT - Sterling strong for now

The UK shares the same demand/supply problems as other core markets, but the effects of global headwinds appear relatively benign. Various retail sales series and sterling lending data indicate strong consumer momentum. Employment and earnings data are also supportive of domestic demand growth.

The UK manufacturing sector has not escaped the global industrial downturn, but ‘imported’ risks are partly offset by relative strength in domestic orders, as indicated by producer surveys. Output

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