Pound Slides As U.K. Retail Sales Fall More Than Forecast
May 23 2024 - 10:28PM
RTTF2
The British pound weakened against other major currencies in the
European session on Friday, after data showed that U.K. retail
sales declined more than expected in April as poor weather reduced
footfall.
Data from the Office for National Statistics showed that the
retail sales volume dropped 2.3 percent on a monthly basis,
following a revised 0.2 percent drop in March. Economists had
forecast a 0.5 percent drop for April.
The ONS said sales decreased across most sectors, with clothing
retailers, sports equipment, games and toys stores, and furniture
stores doing badly as poor weather reduced footfall.
On a yearly basis, retail sales decreased 2.7 percent, in
contrast to the 0.4 percent increase in March. Sales were forecast
to drop only 0.2 percent.
Excluding auto fuel, retail sales slid 3.0 percent, bigger than
economists' forecast of 1.1 percent fall.
European shares traded lower, as investors pushed back the
timing of first rate cut by the U.S. Federal Reserve to
December.
Atlanta Fed President Raphael Bostic said on Thursday that there
is still considerable upward pressure on prices and the U.S.
central bank may need to wait longer to cut interest rates.
The British sterling held steady against its major rivals in the
Asian trading today.
In the European trading now, the pound fell to a 9-day low of
1.2677 against the U.S. dollar, from an early high of 1.2703. The
pound may test support near the 1.24 region.
Against the yen, the euro and the Swiss franc, the pound edges
down to 199.06, 0.8528 and 1.1602 from early highs of 199.45,
0.8515 and 1.1618, respectively. If the pound extends its
downtrend, it is likely to find support around 193.00 against the
yen, 0.86 against the euro and 1.14 against the franc.
Looking ahead, Canada retail sales data for March and
manufacturing sales for April, U.S. goods orders for April, U.S.
University of Michigan's final consumer sentiment for May and U.S.
Baker Hughes weekly oil rig count data are slated for release in
the New York session.
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