Better than expected headline numbers in the UK, but disappointing revisions: retail sales are up 0.2% m/m,. but rose only 0.9% in April, contrary to 1.2% originally reported. This means the y/y rise is 4.4%, below expectations. Core sales rose 0.2%, also above expectations and but also with a downward revision that puts y/y growth at 4.6%, below expectations.
GBP/USDÂ focuses on the recent data and rises. The new high is 1.5928. Will we see 1.60 soon?
The downwards revisions are ignored as the wind is blowing against the dollar and specifically in favor of the pound, which is gaining also against other currencies.
The United Kingdom was expected to report no change in the volume of retail sales in May, in comparison to April (which saw +1.2%). Year over year, sales were predicted to rise 4.5%. Core sales, excluding fuel, carried expectations for a rise of 0.1% m/m and 4.8% y/y.
The pound was on a roll towards the event, enjoying the dovish Fed decision and flirting with the 1.59 level.
Here is how this looks on the chart. Sterling is certainly shining:
