16/10/2018 - US Retail Sales Flat In September

USD

U.S. retail sales growth was almost flat in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years. The Commerce Department said yesterday sales edged up 0.1 percent last month after a similar gain in August. This was well below economists forecast of retail sales increasing 0.6 percent in September. Consumer spending is being driven by a robust labor market, with the unemployment rate near a 49-year low of 3.7 percent. Tight labor market conditions are gradually pushing up wage growth.

GBP

Prime Minister Theresa May said on Monday she had been clear in negotiations to leave the European Union that a future trading relationship had to be linked to a divorce deal to avoid Britain being left in limbo. In parliament, May also told lawmakers an enhanced Canada-style deal was not on offer for the whole of the United Kingdom and that when Britain left the EU, it would be as a whole country.

Northern Ireland’s Democratic Unionist Party, which British Prime Minister Theresa May’s government depends on for support, believes a no-deal Brexit is “probably inevitable,” the party’s Brexit spokesman was quoted as saying on Monday.

Key Announcements

09.30 - GBP: UK Unemployment Rate; Expected to be unchanged at 4%
09.30 - GBP: UK Average Earnings Excluding Bonus; Expected to be lower at 2.8% from 2.9%