Retail sales surged by record levels over the last quarter as shoppers flocked back to stores following the easing of lockdown restrictions. The latest BRC-KPMG retail (April – June) saw a mammoth rebound in like-for-like for sales as stores reopened and people continued to spend more online. Total sales increased 10.4 per cent over the period, with a 13.1 per cent lift in June as spending continued to jump higher. Sterling has held onto the gains seen from last Friday having held above EUR 1.1700 and traded either side of the key resistance level of USD 1.3900 during the Asian session. As expected, the government yesterday confirmed that England will move forward to the fourth stage of the roadmap for lifting lockdown restrictions on the 19th of July. Face masks and ‘passports’ have been recommended.
With major US stock indices trading at or close to record highs, the US Dollar remains on the back-foot. The longer-term downtrend for the Dollar remains in-tact having seen some consolidation during the last 2 months. The US Dollar index is also holding close to its 13-week lows as risk appetite looks solid for the time being. US inflation readings (consumer price index for June) will be released at 1.30pm.
To date, the Euro has failed to make convincing gains above $1.1850 as Germany’s consumer price index for June came in earlier as expected at +2.3%.