UK Retail Sales fall 1.1% MoM in October vs. 0% expected
The United Kingdom (UK) Retail Sales fell 1.1% month-over-month (MoM) in October after advancing 0.7% in September (revised from 0.5%), according to the latest data published by the Office for National Statistics (ONS) on Friday.

The United Kingdom (UK) Retail Sales fell 1.1% month-over-month (MoM) in October after advancing 0.7% in September (revised from 0.5%), according to the latest data published by the Office for National Statistics (ONS) on Friday.

Markets projected 0% in the reported month.

The core Retail Sales, stripping the auto motor fuel sales, decreased 1.0% MoM in October, compared with the previous rise of 0.7% (revised from 0.6%). This figure came in below the market consensus of -0.2%. 

The annual Retail Sales in the UK rose 0.2% in October versus 1.0% prior (revised from 1.5%), below the consensus of 1.5%. The annual core Retail Sales jumps 1.2% in the same month versus a 1.7% rise prior (revised from 2.3%). This reading came in softer than the market expectations of 2.5%.

Market reaction to the UK Retail Sales report

The Pound Sterling attracts some sellers following the upbeat UK Retail Sales report. The GBP/USD pair is trading 0.04% higher on the day at 1.3075 as of writing.

Pound Sterling Price Last 7 Days

The table below shows the percentage change of British Pound (GBP) against listed major currencies last 7 days. British Pound was the weakest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.79% 0.83% 1.65% 0.44% 1.22% 0.96% 1.44%
EUR -0.79% 0.04% 0.89% -0.35% 0.43% 0.17% 0.64%
GBP -0.83% -0.04% 0.82% -0.39% 0.38% 0.12% 0.60%
JPY -1.65% -0.89% -0.82% -1.19% -0.44% -0.71% -0.23%
CAD -0.44% 0.35% 0.39% 1.19% 0.77% 0.50% 1.00%
AUD -1.22% -0.43% -0.38% 0.44% -0.77% -0.26% 0.22%
NZD -0.96% -0.17% -0.12% 0.71% -0.50% 0.26% 0.48%
CHF -1.44% -0.64% -0.60% 0.23% -1.00% -0.22% -0.48%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Inflation FAQs

Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.

The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.

Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.

Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.

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LIVE QUOTES

Name / Symbol
Chart
% Change / Price
GBPUSD
1 D change
+0%
0
EURUSD
1 D change
+0%
0
USDJPY
1 D change
+0%
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