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UK retail sales beats expectations – GBP jumps

Much better than expected retail sales numbers from the UK: they advanced 1.9% m/m  in October, far better than 0.4% predicted. Year over year, the gain is 7.4%. Excluding fuel, sales  increased by 2% m/m and 7.6% y/y. Small upwards revisions accompanied the increases.

GBP/USD, which was already on the rise, extends the move above 1.25, but hesitates.

The better retail sales were partially affected from Halloween but were seen in all store types. Cooler weather also had an impact on the British consumer, that bought more winter gear than usual. This is the biggest  rate of annual increase since 2002.

The United Kingdom was expected to report a monthly rise of 0.4% in retail sales in October, after no change in September. Year over year, an increase of 5.3% was predicted to follow the 4.1% advance seen beforehand. Retail sales excluding fuel were projected to expand by 0.4% m/m and 5.4% y/y.

GBP/USD was trading higher within recent ranges, around 1.2490,  slightly higher on the day.

Data so far this week has not been that great. Inflation rose less than expected and the number of jobless claims surprised to the upside in October, dampening the drop in the unemployment rate in September.

More: GBP: Targets For The ‘Pain Trade’ In GBP/USD & EUR/GBP – Nomura


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.