UK growth likely to fall further to 1.9% y/y in 2016

There is final read of UK Q3 GDP this week, which is important for GBP and is expected to be dropped modestly from the previous reading of 2.4% yoy in Q2 and 2.7% in Q1, widely by consensus.

Despite this week's November retail sales upward surprise, further drops in UK growth momentum is expected at a pace of 2.0% in fourth quarter of this year.

"Next year we forecast UK growth to fall further to 1.9% y/y as tight fiscal policy and EU referendum risk bite", says Barclays in a research note.