18 Jun 2015
Upside risk to UK retail sales – TDS
FXStreet (Barcelona) - The TD Securities Team offers their outlook for UK retail sales data ahead, noting that the soft core inflation suggests the data might see marginal gains.
Key Quotes
“We had initially been looking for a weaker retail sales print today, with some give-back from the strength in April (where sales were up 1.2%) and due to the colder weather. But after another month of soft core inflation, retail volumes should be a little firmer than had previously thought. Markets are looking for a -0.2% decline in sales in May, but we see some upside risk and think that we could even see a marginal gain instead, which would set things up for a very strong quarter for consumer spending.”
Key Quotes
“We had initially been looking for a weaker retail sales print today, with some give-back from the strength in April (where sales were up 1.2%) and due to the colder weather. But after another month of soft core inflation, retail volumes should be a little firmer than had previously thought. Markets are looking for a -0.2% decline in sales in May, but we see some upside risk and think that we could even see a marginal gain instead, which would set things up for a very strong quarter for consumer spending.”