U.K. retail sales posted a strong beat on Thursday, adding to a positive picture for the country's economy following the decision to leave the European Union.
July retail sales - an indicator of post-Brexit vote sentiment - posted a monthly rise of 1.4 percent versus consensus expectations of a 0.2 percent increase. The yearly figure saw a rise of 5.9 percent, according to official data by the Office for National Statistics.
Sterling spiked against the dollar on the news and rose close to $1.320 after trading near $1.305. Gilt yields rose, with prices falling.
"These are strong numbers showing a pronounced increase in sales compared with last July," Joe Grice, chief economic adviser at the ONS, said in a statement. "Better weather this year could be a major factor with sales of clothing and footwear doing particularly well." He added that there was anecdotal evidence that the weaker pound had encouraged overseas visitors to spend.