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
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