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Sterling gains on strong retail sales
Sterling rose on strong retail sales data, while Japan's inflation slowed, China's growth remained under pressure, and gold hit a record high amid geopolitical concerns
Sterling strengthened due to a 0.3% increase in UK retail sales in September
Gold prices reached a new record high, surpassing $2,700 per ounce due to rising geopolitical fears
Sterling rallied today, buoyed by unexpectedly strong retail sales for September, which helped offset concerns from earlier weaker CPI data. Despite expectations that the Bank of England (BoE) will cut interest rates in November, the pace of easing is likely to remain cautious unless the UK economy faces a sharper downturn. UK retail sales volumes rose by 0.3% in September, defying expectations of a -0.3% decline and marking the highest level since July 2022, signaling a robust consumer rebound.
Japan inflation slows but stays above target
Japan’s core CPI, excluding fresh food, eased to 2.4% year-on-year in September, slightly above forecasts of 2.3%. Despite the decline from 2.8% in August, inflation has remained above the Bank of Japan’s 2% target for more than two years.
China's growth slows amid external pressures
China’s economy grew by 4.6% year-on-year in Q3, down from 4.7% in Q2, aligning with market expectations. This marks the slowest growth since early 2023, as global headwinds continue to weigh on China’s economic performance. On a quarterly basis, GDP expanded by 0.9%.
Gold hits record high amid geopolitical fears
Gold surged past $2,700 per ounce on Friday, reaching a new record high driven by escalating fears of regional conflict, which has fueled demand for safe-haven assets.
