Equity markets rebounded strongly after the release of the June US Retail Sales data came in strong yesterday at 1% growth versus the 0.3% expected. Jobless claims for the US also came in at 227k versus the expected 235k expected. Adding to the strong consumer story, Walmart beat expectations, indicating stable consumer health in the US.
In the UK, monthly Retail Sales came in this morning in line with forecasts, rebounding strongly, rising 0.5% from last month's -0.9% reading, strengthening GBP across the board. GBP was also supported after yesterday’s Q2 GDP data showed a rise of 0.6%, although output for June flatlined at 0%.
*Daily move - against G10 rates at 7:30am, 16.08.24
** Indicative rates - interbank rates at 7:30am, 16.08.24
The Retail Sales figures out of the UK and US this week show resilient consumer demand, which surprised markets after the recent fallout in equities on fears of a sharp slowdown in global output.
Interest rate markets have been extremely volatile of late and, following the recent stronger data, have tempered interest rate cut expectations for the remainder of the year.
Michigan Consumer Sentiment is expected out at 3pm this afternoon, forecasted 0.5% higher than last month’s reading.
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