GBP Rallies On Strong Retail Sales

Thursday, September 20 – London Session Recap

During today’s London session, we saw the release of the SNB’s latest policy decision and UK Retail Sales data.

As expected, the SNB kept policy unchanged with a few marginal adjustments to its Monetary Policy Assessment. The SNB revised inflation expectations for 2019 and 2020 to 0.8% (prev. 0.9) and 1.2% (prev. 1.6) respectively.

Regarding their accompanying statement, the SNB reiterated that it will remain active in FX markets. Adding that CHF is highly valued and the situation regarding the FX market is still fragile.

Moving onto UK Retail Sales for August, the report was positive, with all figures beating expectations.

Retail Sales printed at 0.3% M/M versus market consensus of -0.2% and at 3.3% Y/Y versus consensus of 2.3%.

Core Retail Sales also printed at 0.3% M/M versus consensus of -0.2% and at 3.5% Y/Y versus consensus of 2.5%.

Following the positive report, GBP strengthened across the board. GBPUSD broke firmly above 1.3200 while GBPJPY prints fresh session highs as it approaches 149.00.

For additional research, we’ve posted news articles from around the web below.