Trade Desk Thoughts - U.K. CBI Realized Sales

U.K. CBI Realized Sales Actual -27, Expected -40, Previous -46

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 lower.

Trade Desk Thoughts: The CBI survey showed that retail sales contracted for a third month in a row. Responding to its latest Distributive Trades Survey, 21% of retailers said that the volume of sales in the first half of September was up on last year, while 48% said they were down. The resulting balance of -27% marks a third consecutive month of sharply contracting sales, but is better than firms had feared (-42%), and is an improvement on the survey record low in August (-46%). Nevertheless, the outlook for October remains very weak (-30%).

Forex Technical Reaction: The pound bounced again from the 1.8600 resistance area. The pair has struggled for a number of sessions to break above this level; however, economic releases from the U.S. later today may give the cable the push it needs.

The LFB-Forex.com