UK Retail Sales beat estimates with 1.2% MoM in October, GBP/USD uninspired

The UK retail sales came in at 1.2% over the month in October vs. 0% expected and 1.5% previous. The core retail sales, stripping the auto motor fuel sales, stood at 1.3% MoM vs. 0.1% expected and 1.6% previous.          

On an annualized basis, the UK retail sales jumped by 5.8% in October versus 4.2% expected and 4.7% prior while the core retail sales increased by 7.8% in the reported month versus 5.9% expectations and 6.4% previous.

Main points (via ONS)

“In October 2020, retail sales volumes increased by 1.2% when compared with September; the sixth consecutive month of growth in the industry.“

“Growth in the volume of sales for non-store retailing at 6.4%, household goods stores at 3.2% and department stores at 3.1%.”

“Consumers started Christmas shopping earlier this year, also seeing early discounting from a range of stores.”

FX implications

GBP/USD holds the higher ground, as the pound cheers the upbeat UK macro news. The spot now trades +0.16% on the day, flirting with daily highs of 1.3288.