Release Explanation: Retail sales are the measure of the total sales of goods and services by retail stores in the U.K. Retail Sales is an important measure of consumer spending and inflationary pressures. Steady increases in retail sales apply significant inflationary pressures to consumer prices. With Retail Trade being the foremost indicator for consumer spending, this figure is extremely important in understanding the U.K. economy.
Trade Desk Thoughts: Retail sales in the United Kingdom rose 1.1 percent, and 3.2 percent on a total basis, from January of 2008. This is the best performance of the index since May. Food sales had stronger growth while non food sales remained down for the year.This jump can be attributed to the massive discounting and clearance sales. Although many purchases were to replace worn items and essentials rather than discretionary items.
Forex Technical Reaction: There is quite a bit of volatility seen on the majors this evening, not from this release, but the proposed stimulus package due out of the U.S. The cable has found some support at the neutral pivot point after dropping 40 pips from the opening price.