United Kingdom Retail Sales unexpectedly rise 0.5% MoM in August vs. -0.2% estimates

Sagar Dua FXStreet

Retail Sales, a key measure of consumer spending, in the United Kingdom (UK) rises 0.5% month-over-month (MoM) in August after declining at a similar pace in July, the latest data published by the Office for National Statistics (ONS) showed on Friday. Economists expected Retail Sales to decline again but at a moderate pace of 0.2%.

On an annualized basis, the consumer spending measure rose at a faster-than-expected pace of 2.4% against the previous reading of 1.2%, revised lower from 1.6%. The data was expected to grew by 1.9%.

Market reaction

The British Pound (GBP) appears to have attracted some bids after the release of the strong UK Retail Sales data for August. As of writing, GBP/USD rebounds marginally to near 1.3366 from 1.3361.

Economic Indicator

Retail Sales (MoM)

The Retail Sales data, released by the Office for National Statistics on a monthly basis, measures the volume of sales of goods by retailers in Great Britain directly to end customers. Changes in Retail Sales are widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the MoM reading comparing sales volumes in the reference month with the previous month. Generally, a high reading is seen as bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY holds firm above 157.00 ahead of Ueda's presser

USD/JPY holds the uptick above 157.00 in the European session on Friday as the Japanese Yen remains under intense selling pressure despite the Bank of Japan's (BoJ) interest rate hike to 1.25% and a somewhat hawkish Monetary Policy Statement, as two dissents against the rate hike weigh. All eyes now remain on BoJ Governor Ueda's press conference for further trading impetus.

Gold advances to fresh weekly top; eyes $$4,400 as softer US bond yields cap USD gains

Gold attracts some follow-through buying for the second straight day, and touches a fresh weekly high heading into the European session. US bond yields retreat further from multi-year highs as the recent pullback in crude oil prices helped alleviate immediate fears of runaway inflation. This caps gains for the US Dollar and supports the bullion.

Bitcoin extends recovery, Ethereum eyes $2,500, XRP holds $1.30

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their recovery, trading above $76,700, $2,400 and $1.300, respectively, on Friday. These top three cryptocurrencies now face key technical levels that could determine whether their recoveries extend further or pull back.

Cardano extends gains on bullish derivatives

Cardano (ADA) extends its recovery, trading above $0.210 at the time of writing on Friday, after finding support around a key zone earlier this week. Improving derivatives positioning and supporting technical indicators indicate growing bullish sentiment among ADA traders. Derivatives data shows a bullish tilt among Cardano traders.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.