This morning the UK released retail sales figures year on year, expected 3.4% came out at 5.2%.This surge is the fastest pace in two years as shoppers snapped up bargains in the January sales. Retail sales including auto fuel was also up at 5.2%, expected at 3.6%. Public finances or the amount spent on the public sector has lessened for January compared to last year +8.5bill to -24.9bn highlighting the fiscal tightening. Government spending and public sector net borrowing are also down substantially on last year. Despite all these positive figures the Pound has been on the slide throughout the course of the morning.
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At 13:30GMT we saw the release of the US CPI Yon Y data previous 0.7%, expected 1.3% came out at 1.4%. Core CPI figures were also positive across the board as the Dollar strengthened mildly off the back of this.
We also had the release of the Canadian CPI year on year data previous 1.6%; expected 1.7% came out at 2%. Core CPI figures were also positive across the board for the Canadian Dollar. After many central banks noting that they expect inflationary pressure due to the global volatility, these positive figures are a slight surprise.
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