POUND FALLS VERSUS US DOLLAR AND EURO
Retail sales in the UK fell last month according to a report today, pushing the pound further against both the US dollar and the euro.
The pound fell versus most of its major peers following the report. GBP/USD shed 0.07% while the pound dropped 0.2% against the euro today after a 0.8% fall yesterday. The pound is approaching a one month low against the euro.
Retail sales fell 0.7% in March, less than the estimated 0.8%, but falling well below the 2.1% increase from February. Core retails, excluding automobile sales, decreased by 0.8%, falling below analysts' expectations for only a 0.6% drop. Data yesterday also showed an increase in unemployment by 0.1% and revealed inflation is rising at a faster rate than salaries. The threat of the triple-dip recession is still very much a concern for the UK, and it is likely that the Bank of England will be forced to add more stimulus to the economy.
The pound so far has decreased by 4.4% this year.