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17 Dec 2015
UK retail sales posts mammoth gains, Sterling still struggling against dollar - BBH
FXStreet (Delhi) – Research Team at BBH, notes that the November UK retail sales rose more than three times what the Bloomberg consensus expected, and still sterling has struggled in the face of the greenback.
Key Quotes
“UK retail sales (excluding gasoline) rose 1.7%. The consensus was for a 0.5% increase. The October swoon was revised to -0.8% from -0.9%. Discounts related to "Black Friday" helped pump up sales. The market did not see the report as bringing forward a BOE rate hike. The June 2016 short-sterling futures contract was a bit firmer, implying a slightly lower yield.”
“Sterling's session low was recorded in Europe near $1.4920. It initially responded well to the headline news but ran into sellers as it poked through $1.50. This area is likely to cap upticks. The month's low a little below $1.49 beckons. The year's low set was recorded in April (~$1.4565).”
Key Quotes
“UK retail sales (excluding gasoline) rose 1.7%. The consensus was for a 0.5% increase. The October swoon was revised to -0.8% from -0.9%. Discounts related to "Black Friday" helped pump up sales. The market did not see the report as bringing forward a BOE rate hike. The June 2016 short-sterling futures contract was a bit firmer, implying a slightly lower yield.”
“Sterling's session low was recorded in Europe near $1.4920. It initially responded well to the headline news but ran into sellers as it poked through $1.50. This area is likely to cap upticks. The month's low a little below $1.49 beckons. The year's low set was recorded in April (~$1.4565).”