Pound Gaines Before Retail Sales Release

The pound is higher against most of its major rivals, especially against the US dollar before the Retail Sales data for July are published at 9:30. Analysts expect for the gauge to have risen only by 0.4% in July down from 0.8% in the previous month. Weak number would imply that core retail goods volumes had been flat on a quarterly basis. Sterling came under pressure yesterday morning as weak unemployment data and dovish Bank of England minutes added to the signs of sluggish economic recovery. However, the pound managed to pare its loses during the afternoon trade as economic data coming out from the US and the Eurozone was exceptionally gloomy. Looking ahead to the US today, consumer price inflation numbers and Philadelphia Fed Index (Business Outlook Survey) release headline the economic calendar.  US consumer prices excluding food and fuel costs, are expected to have increased by 0.2% in July after rising 0.3% in the previous month, marking it the biggest month to month gain in three years. Separately, the Philly Fed index is expected to climb to 3.4 in August after dropping to 3.2 the previous month.