UK July retail sales came in at +0.4% m/m, +3.3% y/y compared to our forecasts of +0.4% and +2.7% respectively. Seems the market’s median forecasts were a little different though, basically +0.2% and +2.6%. That’s the good news.
The bad news is that PSNB came in at £8.016 bln way above median forecast of a deficit around £500 mln (we had +0.6 bln), underlining collapse of tax revenues due to deep recession. .
PSNCR came in at £182 mln compared to a median forecast of -£6.25 bln (we had -£5.6 bln)
Cable peeked above 1.6600 fleetingly before being batted back, presently losing altitude quickly down at 1.6550.
