The GBP/USD pair nervously reacted to the daily report on UK retail sales.
The British pound rose against the dollar for a third day in a row away from local minima. Current quote in the GBP/USD pair is 1.5253. Today data came out on retail sales in the UK in October. The indicator, which is very important for the Bank of England, last month fell by 0.6% m/m against the forecast of a reduction of 0.5% m/m. Y/y the indicator rose by 3.8% against expectations of 4.2% y/y.
Statistics on retail sales are still published inhomogeneous - the population is clearly not willing to part with their money quickly, even with low inflation in the country. This signal is twofold for the analysis: on the one hand, conservative savings is a good British habit, which rescued them many time in crisis situations. However, without an expansion of spending there will not be an impulse of growth in the economy.
Data on retail sales is closely tracked by the Bank of England. Such a weak report could force the regulator at the next meeting to elect a calm tone in describing the future monetary moves.
RoboForex Analytical Department