The UK Retail Sales is a direct measurement of consumer activities at the retail levels. A higher release is good for the economy, thus better for its currency; a lower release is considered as negative for the economy and not good for its currency. Retail Sales makes up a substantial part of the GDP, and the effect of this release could be very profound given the recent bad news coming from UK.
The UK Retail Sales m/m number came out at 0.6% versus the expected 0.0%. Despite the negative revision to last month’s release, we jumped in on a BUY GBP/USD due to the better than expected number and because most of the negativities have already been priced in… Immediately after the release, we bought GBP/USD at around 1.5738 (trade room members were able to enter at a lower price). After a few minutes, we closed the trade with 35 pips of profit and a potential of up to 60+ pips by the end of the day.