UK retail sales dropped 0.6% in October, on top of a downwards revision from 1.9% to 1.7%. Year over year, the figure is 3.8%. Core sales dropped 0.9% and rose only 3% y/y. All the previous figures were revised to the downside.
GBP/USD extended its pre-release dip and reached 1.5233 before bouncing. Was there a leak?
The UK was expected to report a drop of 0.5% in monthly retail sales in October after a leap of 1.9% in September. Year over year, a rise of 4.2% was predicted, lower than 6.5% seen last time. Core sales carried expectations for ‘0.5% m/m and 3.9% y/y.
GBP/USD was drifting lower within the higher range towards the release, trading around 1.5255.
Expectations were low this time in anticipation of a correction from the big rise seen previously. Support is at 1.5250, 1.52 and 1.5160. Resistance is at 1.53 and 1.5370.
Earlier, the pound enjoyed the slide in the US dollar following the FOMC Meeting Minutes, that didn’t really reveal anything new.
In our latest podcast we discuss the December decision driving the dollar, declining oil and more:
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