UK Retail Sales rise by 0.5% MoM in June vs. 0.4% expected, GBP/USD unfazed

• The UK Retail Sales came in at 0.5% MoM in June, beat estimates.
• Core Retail Sales for the UK rose by 0.3% MoM in June.
• The cable flirts with daily lows on mixed UK Retail Sales.

The UK retail sales came in at 0.5% over the month in June vs. 0.4% expected and -1.3% previous. The core retail sales, stripping the auto motor fuel sales, stood at 0.3% MoM vs 0.6% expected and -2.0% previous.          

On an annualized basis, the UK retail sales rose by 9.7% in June versus 9.6% expected and 24.6% prior while the core retail sales increased by 7.4% in the reported month versus 8.2% expectations and 21.7% previous.

Main points (via ONS)

Retail sales up 9.5% when compared with their pre-coronavirus (covid-19) pandemic February 2020 levels.

Largest contribution to the monthly increase in June 2021 came from food stores where sales volumes.

Anecdotal evidence suggesting these increased sales may be linked with the start of the euro 2020 football championship.

Volume of sales for the three months to June 2021 was 12.2% higher than in the previous three months.

Proportion of sales online decreased to 26.7% in June 2021, down from 28.4% in May 2021.

FX implications

GBP/USD held the lower ground on mixed UK Retail Sales, flirting with daily lows of 1.3754, as of writing.