"UK Retail Sales Defy Expectations with 0.3% Rise in September"

In September 2024, UK retail sales unexpectedly rose by 0.3% from the previous month, contrary to market predictions of a 0.3% decline, according to the Office for National Statistics.

Overall Performance: Following a 1.0% increase in August, the 0.3% rise indicates that consumer spending remains resilient despite economic challenges.

Core Retail Sales: When excluding automotive fuel, core retail sales also increased by 0.3%, continuing the trend from earlier months.

Annual Growth: Retail sales grew by 3.9% year-on-year, a notable improvement from the previous month’s 2.3% increase.

Sector Performance: Food sales performed robustly, with major retailers like Tesco raising their profit forecasts and showing optimism for the upcoming holiday season. However, consumers still exercised caution regarding non-essential spending.

GBPUSD gained momentum after upbeat UK retail sales. Major resistance - 1.310

Trend reversal level- 1.3150

Support- 1.300,1.2960

Major weakness only below 1.2960