We've seen a further move lower for the pound in the wake of weaker headline data

Second-wave selling (the data news has to filter out there into corp land and digested by market) has seen GBPUSD down to 1.5614 from 1.5653 and EURGBP to 0.7128 from 0.7105

The same second-wave impact, in reverse, was seen after the stronger CPI data and needs to always be considered in the wake of any key release before you jump straight in

Cable bids/support at 1.5600 and 1.5580-85, EURGBP trying to chew through offers around 0.7035. Next at 0.7050

Headlines from the ONS

  • Year-on-year estimates of the quantity bought in the retail industry grew for the 28th consecutive month in July 2015, increasing by 4.2% compared with July 2014. This was the longest period of sustained year-on-year growth since May 2008, when there were 31 periods of growth
  • The underlying pattern in the data, as suggested by the 3 month on 3 month movement in the quantity bought, showed growth for the 29th consecutive month, increasing by 0.5%. This is the longest period of sustained growth since consistent records began in June 1996
  • Compared with June 2015, the quantity bought in the retail industry is estimated to have increased by 0.1%. Increases were reported by department stores, other stores, household goods stores and non-store retailing offset by falls in predominantly food stores, textile, clothing and footwear stores and petrol stations
  • Average store prices (including petrol stations) fell by 3.0% in July 2015 compared with July 2014; the 13th consecutive month of year-on-year price falls. All store types except textile, clothing and footwear stores reported decreases. Petrol stations again made the largest contribution, falling by 10.9%, the 23rd consecutive month of year-on-year falling petrol prices
  • Amount spent in the retail industry increased by 1.0% in July 2015 compared with July 2014 but decreased by 0.2% compared with June 2015. The average weekly spend in the retail industry was £7.1 billion; non-seasonally adjusted data show this is unchanged from the previous month and the July 2014 figure.
  • The value of online sales increased by 13.0% in July 2015 compared with July 2014, however, there was no growth in July 2015 compared with June 2015. They accounted for 12.6% of all retail sales
  • Revisions in this release were caused by the incorporation of late data. The earliest revisions point for current price, non-seasonally adjusted data was July 2014. More information on revisions can be found in the background notes

Full release here