GBP/USD battles 1.3500 after UK Retail Sales beat estimates with 0.8% MoM in Oct
|- The UK Retail Sales came in at 0.8% MoM in October, a big beat.
- Core Retail Sales for the UK rose by 1.6% MoM in October.
- The cable flirts with daily highs near 1.3500 on solid UK Retail Sales.
The UK retail sales came in at 0.8% over the month in October vs. 0.5% expected and 0% previous. The core retail sales, stripping the auto motor fuel sales, stood at 1.6% MoM vs 0.6% expected and -0.4% previous.
On an annualized basis, the UK retail sales decreased by 1.3% in October versus -2.0% expected and -0.6% prior while the core retail sales dropped by 1.9% in the reported month versus -3.1% expectations and -1.9% previous.
Main points (via ONS)
“Non-food stores was the only main retail sector that saw a rise in sales volumes, increasing by 4.2% in October 2021.”
“Clothing stores sales volumes in October 2021 were only 0.5% below pre-pandemic levels in February 2020, with some retailers suggesting that early Christmas trading had boosted sales.”
“Automotive fuel sales volumes fell by 6.4% in October 2021 as they returned to more typical recent levels following strong growth in September; volumes were 5.0% below their February 2020 levels.”
“Food store sales volumes fell by 0.3% in October 2021; despite the fall in October, volumes were 3.4% above pre-coronavirus pandemic levels in February 2020.”
FX implications
GBP/USD holds the higher ground on a big beat on the UK Retail Sales, currently trading at 1.3500, up 0.09% on the day.
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