Sterling fluctuated slightly on the background data on retail sales, which were strong at first glance, but not so good if you stare. Sales rose by 1.9% compared to the previous month, as a general indicator, but the December data were revised with a substantial decrease from -0.8% to -1.4% compared to the previous month. Recall, Dec. influenced its extremely cold temperature, which affected the overall GDP data. In addition, if you take the last three months, sales increased by only 0.2% against the previous three months. From this perspective, textiles, clothing and footwear, along with household goods were the weakest sectors. Do not store retailers showed good results, if guided by the measure of calculation (an increase of 3.6%), which may have helped online shopping during cold weather.
The pound strengthened insignificantly during the release, the cable is currently above the barrier 1.62. This is probably more downward impact on the adjustment of position after weak data, given that the balance of these data was not particularly optimistic. Further, attention to sterling will come after the February Protocol Committee meeting on monetary policy, where the Hawks will be looking for their own kind, to join those who voted for higher interest rates in January.
Translate this page
