Pound sterling gets another boost from the domestic economy: a gain of 0.8% in retail sales, better than 0.3% expected. Year over year, this is a rise of 4.3%, better than 3.8% predicted. Core retail sales rose 0.8% and y/y 4.6%. The negative points are that the previous data was revised to the downside, with monthly retail sales now printing a drop of 0.4% in October, worse than 0.3% originally reported.
GBP/USD rises around 30 pips to 1.5675.
UK retail sales were expected to bounce back and rise by 0.4% in October after a drop of 0.3% in September.
GBP/USD traded around 1.5650 towards the release, still suffering from the dollar strength that followed the FOMC Meeting Minutes, which were only moderately more dovish than the statement.
Earlier in the week, inflation came out marginally above expectations at 1.3% y/y and more importantly, the meeting minutes from the MPC were relatively hawkish, with two members still voting for a rate hike.
Cable managed to top 1.57 after already having dipped under 1.56. Is the pair on a recovery path?
Here is the preview: trading the UK retail sales with GBP/USD.
