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U.K. CBI Realized Sales Actual -17, Expected -10, Previous 3
Release Explanation: The CBI Realized Sales measures the consumer spending. It is a leading indicator of consumer spending because retailer and wholesaler sales are directly influenced by consumer buying levels. A reading above 0 indicates higher sales volume, below 0 indicates weaker sales.
TheLFB-Forex.com Trade Desk Thoughts: Retail sales continued to decline in May, even though there were some signs of improvement in April
In the latest CBI Distributive Trades Survey, 31% of retailers said year-on-year sales volumes were up in the first half of May, while 48% said they were down. The resulting balance of -17% was close to retailers’ expectations (-15%) and, other than last month’s broadly flat figure of +3%, was the least negative figure since June 2008 (-9%). A similar decline in sales is expected in June (-20%).
“The release shows that conditions in the U.K. retail business are still tough and businesses expect these circumstances to continue over the coming months. However, some notable improvements have been made in 2009, after hitting a record low of -55 in December”
Forex Technical Reaction: Even though the release was worse than expected, the pound rose 40 pips after the retail numbers hit the wires. The cable trades near Thursday’s opening price, after it fell as much as 120 pips during the overnight session
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