No surprises in UK retail sales for August: +0.4%, bang on expectations. Year over year, we have a rise of 3.9%, slightly below 4.1% expected. UK store prices fall 1.2% y/y, the most since 2009. This isn’t good news. The general picture of the UK economy is good, but the lack of inflationary pressures seen in both this week’s CPI data as well as in prices in stores, is quite discouraging for the central bank.
The pound is marginally lower.
UK retail sales were expected to rise by 0.4% in August after 0.1% in July. This release usually has a significant impact on the pound, but today is a very special and historic day: the day of the Scottish referendum.
GBP/USD traded around 1.63 in quite a choppy fashion.
More on the big event:
- Scotland Referendum: Timetable for forex traders
- The case for Yes – 5 reasons why the polls could possible be totally wrong on Scotland
- Scotland Referendum: what the betting odds imply for GBP/USD
- GBP/USD could retest 2010 lows if Scotland votes to leave UK
- Latest podcast, which also includes the Scottish referendum
