The biggest piece of data yesterday came from the UK, where we gained an insight into the UK’s service sector. UK retail sales which account for approximately 80% of growth posted its highest reading in just over three years. Retail sales was forecast at 1.2% but exceeded expectations posting a whopping 2.3% and therefore 4.5% year on year. It was a big rebound from last month’s poor -1.8%. The bullish figure could be said to be the result of the recent hot weather and a decline in petrol prices.
Across the pond, the US released the weekly unemployment claims and the Philadelphia Fed Manufacturing Index. Unemployment claims registered better than expected at 232k, the lowest reading for 11 weeks. Claims have decreased over the last three weeks, consecutively posting under the key 240k mark. The Philly Fed Manufacturing Index also exceeded the consensus, signalling a faster pace of expansion within the manufacturing sector. The bullish postings for the US helped boost the Greenback and par back some of its losses after the recent political events involving the ‘Trump Dump’.
A relatively quiet economic docket today in terms of tier 1 data, however we do have a raft of tier 2 data released from all over Europe. Firstly, we have the Eurozone current account, where markets will gain an insight into the single currency unions imports and exports. Shortly after, the Eurozone powerhouse Germany, release their PPI reading. Finally, closer to home, the UK announce their CBI industrial orders, scheduled to remain at the same pace as last month’s reading.