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  • UK retail sector showed signs of recovery in June.
  • GBP/USD clings to modest daily gains near mid-1.24s after the data.

Retail sales in the UK contracted at a softer pace than in June than it did in May with the CBI Distributive Trade Survey – Realized recovering to -37% from -50%. This reading came in slightly worse than the market expectation of -34%.

Commenting on the data, “with high street shops, department stores and shopping centres re-opening across England last week amid some scenes of long queues, you’d be forgiven for thinking retailers’ difficulties are coming to an end,” said Rain Newton-Smith, CBI Chief Economist.  “Despite retailers working flat out to make sure they are safe and ready to open their doors, outside the grocery sector most retailers expect sales to be far below where they were this time last year.”

Market reaction

The GBP/USD pair ignored this data and was last seen gaining 0.2% on the day at 1.2443.