Article by ForexTime
Sterling received a boost as gilt yields moved higher following a stronger than expected UK retail sales report that showed a large uptick in September. The Office of National Statistics said that England’s hosting of the rugby world cup, which commenced on Sept-18, gave the sector a boost. Although the world cup is obviously a flattering one-off, cycle lows in joblessness and solid rises in real wages suggest that retail activity will remain robust.
UK retail sales erupted in September, rising 1.9% month over month, well up on the median forecast for 0.4% and up from a 0.4% decline in August. Sales surged 6.5% year over year, advancing from 3.5% in August. The ex-fuel figure was equally impressive, rising by 5.9% year over year from 3.2% in the previous month. The ONS stats office said that England’s hosting of the rugby world cup, which commenced on Sept-18, gave the sector a boost.
Sterling initially tested the 10-day moving average early in the trading session ahead of the retail sales number but gained traction and moved higher testing resistance near 1.5510. Momentum on the currency pair remains positive with the MACD printing in positive territory with an upward sloping trend line that points to a higher exchange rate.
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