The monthly retail sales data released yesterday showed a better than expected headline print which helped to support the US dollar’s recovery. Data from the US commerce department showed that retail sales rose 0.6% on the month in July. This was higher than the estimates of a 0.4% increase and marked the biggest monthly gain since December. Excluding autos, retail sales rose 0.5%, more than the estimates of 0.4% increase.
In the UK, consumer prices remained steady, rising 2.6% on the month. This was slightly lower than the estimates of a 2.7% increase, and inflation rose at the same pace as the previous month in July. The British pound weakened, as a result, led by a stronger US dollar.
Looking ahead, the economic calendar is busy today. The Italian preliminary GDP figures are expected to show a 0.4% quarterly growth. In the UK, the monthly wage data suggests that average earnings increased 1.8%, rising at the same pace as the month before, while the unemployment rate is expected to remain steady at 4.5%.
Flash GDP estimate from the Eurozone is also due today and is expected to show a 0.6% GDP growth in the second quarter. Later in the day, the US building permits and housing data is due followed by the FOMC meeting minutes.
