Jamie Jemmeson
September 17, 2021

Sterling Slides as Retail Sales Decline for Fourth Month

Sterling

UK retail sales fell for the fourth month in a row as people spent more time eating and
drinking in bars and restaurants. Sales fell by 0.9% in August following a slide of 2.8% fall in
July. Overall, sales were 4.6% higher compared to pre-pandemic levels, Sterling edged lower
after the data release

Euro

The Euro was on the back foot following the latest opinion polls for the German election which
continued to indicate strong support for the SPD and Green parties maintaining a focus on
potential fiscal policy changes.

Dollar

The US Dollar strengthened following the release of the retail sales data which showed an
increase of 0.7% for August compared with expectations of a 0.8% decline, although there
was a downward revision to a 1.8% dip for July. In addition, the Philadelphia Fed
manufacturing index strengthened to 30.7 for September from 19.4 the previous month and
well above market expectations of 19.

Looking to the day ahead, the market will now focus on the US University of Michigan
consumer confidence figure ahead of next week’s FOMC meeting

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