Latest data released by ONS - 15 February 2019
- Prior -0.9%; revised to -0.7%
- Retail sales +4.2% vs +3.4% y/y expected
- Prior +3.0%; revised to +3.1%
- Retail sales (ex autos, fuel) +1.2% vs +0.2% m/m expected
- Prior -1.3%; revised to -1.0%
- Retail sales (ex autos, fuel) +4.1% vs +3.2% y/y expected
- Prior +2.6%; revised to +2.9%
Positive beat and positive revisions to boot on the report here. That has helped sterling nudge higher with cable rising back to just above 1.2810. But as per the usual practice, fade the move here. Just remember, it's all about Brexit, Brexit, Brexit.
Looking at the details, ONS says that clothing saw strong sales due to price reductions while food sales also grew after the Christmas dip and those were the notable reasons why retail sales came in stronger for January.
As for the rolling three months reading, the three months leading up to January clocked in a +3.5% 3m/y growth which is the strongest rise since July.
Even though this is a mere 10-15 pips jump in cable, it's not going to be one that lasts the course to push the pound higher. It'll be a quick couple of pips on fading the move as we reset back to under 1.2800 again I reckon.
