Worse than expected figures on all fronts + downwards revisions weigh on GBP/US and halt the rally. Update: after the initial slide, cable resumes its rises. There are forces stronger than indicators these days.
- Retail sales fell 1% against -0.3% expected and the previous figure was revised to 1.3% instead of 1.7%.
- Year over year, it’s only up 2.6% after 4.5% and below 4.3% predicted.
- Ex-fuel mm is down 0.9% against -0.3%.
- Ex fuel y/y is up only 2.1% instead of 3.5%.
The UK was expected to report a drop of 0.3% in the volume of retail sales in December after a nice rise of 1.7% in November. Year over year, a rise of 4.3% was on the cards.
Before the publication, GBP/USD extended its recovery and advanced to 1.4275. Was the market front-running a specific outcome?
The pound was hit hard by Carney but enjoyed a nice relief rally on the stock market recovery and Draghi.
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