Thursday, August 16 – London Session Forecast
During today’s London session, the main event was UK Retail Sales. The report was positive with the ONS reporting July Retail Sales record strongest three months since February 2015.
Retail Sales M/M printed at 0.7% versus consensus of 0.2% while Retail Sales Y/Y printed at 3.5% versus consensus of 3.0%. Furthermore, Core Retail Sales exceeded all expectations at 0.9% M/M and 3.7% Y/Y versus consensus of 0.1% and 2.8% respectively.
Following the positive report, GBP strengthened with GBPUSD testing session highs. However, GBP failed to maintain its initial strength with GBPUSD paring the move to trade at pre-announcement levels.
Elsewhere, the market has maintained the positive risk tone to the detriment of safe havens. Alongside US/China reviving trade talks, Turkey concerns have eased following Qatar pledging a $15bln investment.
For additional research, we’ve posted news articles from around the web below.
- Discounts and online help retail sales bounce back in July
- Sunshine and football give UK retail sales unexpected boost
- World Cup and heatwave boost retail sales
- Qatari emir vows $15bn Turkey investment after Erdogan meeting
- Qatar Comes to Rescue as Turkey Moves to Avert Financial Crisis