UK Retail sales beat expectations rising by 0.6% versus 0.4% eyed as pent up demand and higher prices helped retailers in September. Cable surged to session highs taking out the 1.6150 level on investor optimism over the prospects of the UK economy.
UK retail sales rebounded in September boosted by sales in clothing and school uniforms due to the start on a unusually late autumn school term. Clothing sales rose by 2.0% contributing a lionâ€™s share of growth to the number. Overall retail sales rose by 1.0% after slumping the month prior as Britons stayed home to watch the Olympics.
This was the second major economic beat this week for UK after yesterdayâ€™s better than expected labor data indicating that the economy is continuing to rebound. The news has been helping to keep the pound bid with the pair holding steady above the 1.6100 for most of this week. If risk flows remain positive into North American trade the pair will likely challenge the 1.6200 figure as it slowly makes its way towards the swing highs on 1.6300 on improving economic conditions and better investor sentiment.