Data from the Office for National Statistics today showed that UK retail sales fell unexpectedly in May. A recent poll by Reuters indicated that economists were expecting an expansion of 1.6%, so the 1.4% monthly decline was way off the mark. The Pound fell in response, particularly against the US dollar which is rallying generally after the Fed raised expectations for rate hikes in 2023.
US dollar strength is not helping commodities which continue the recent sharp sell-off giving back much of this year’s gains.
Socks are muted this morning in the UK and Europe. Data today also showed that the German PPI, Producer Price Index, rose 1.5% in May, much more than expected.
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