UK retail sales to remain firm after election

UK retail sales data is scheduled to release today. The fundamental drivers of the country's consumption are getting stronger. Inflation remains around zero and earnings growth is picking up, resulting in rising real incomes. 

Moreover consumer confidence reached cycle highs following the surprise Conservative victory in the May General Election. This bodes well for retail sales and both retail surveys corroborate this story with strong readings in June. Accordingly a third consecutive month of growth in sales with an increase of 0.2% mom is expected, says Societe Generale.