UK Retail Sales posted a bullish 1.3% m/m, nearly doubling market expectations. The yearly figure also rose substantially from 2.7% to a whopping 4.3%, its best figure since January this year. Last month’s monthly and yearly figures have all been revised higher as well. Of course, the figures paint a stronger picture of the UK economy as the tertiary sector accounts for nearly 80% of UK output. Sterling continued this week’s rally after yesterday’s Brexit poll showed the Remain camp firmly in the lead, this did not falter after last night’s hawkish Fed comments.
Across the pond, the US released two pieces of high tier data. Firstly the Philly Fed Manufacturing Index, which measures business conditions in manufacturing hub Philadelphia’s secondary sector. The reading failed to meet the economists’ consensus and post well below the expected 3.2 at -1.8, its worst figure in three months. Simultaneously, we saw the release of US Jobless claims, which dropped from last week’s one year high to 278k, a positive sign for the US labour market.
Today brings a relatively quiet end to what has been an extremely volatile week, especially for the Pound. The UK releases the CBI industrial order, with expectations of this to fall further from -11 to a -13 expected. From the US, we gain an insight into their housing market as they release their Existing Home Sales figures.