Latest data released by ONS - 20 September 2018
- Prior +0.7%; revised to +0.9%
- Retail sales +3.3% vs +2.3% y/y expected
- Prior +3.5%; revised top +3.8%
- Retail sales (ex autos, fuel) +0.3% vs -0.2% m/m expected
- Prior +0.9%; revised to +1.1%
- Retail sales (ex autos, fuel) +3.5% vs +2.4% y/y expected
- Prior +3.7%; revised to +4.0%
Solid beats across the board again for retail sales, keeping up with the trend in recent months. Cable rises to a high of 1.3206 on the day on the back of the report while EUR/GBP slips to a low of 0.8863.
Looking at the details, household goods are what is backing up the rise here while food sales declined after the strong showing in July - thanks to the World Cup - but once again the summer time feels continue to drive up UK consumer sentiment and it's showing here in the numbers (alongside positive revisions).
The key once again for the pound will be to hold an upside move against the dollar over the 100-day MA as the bias continues to favour buyers at this point. But just as the case was yesterday, watch out for them Brexit headlines.
