Pound Drops After U.K. Retail Sales Data

The British pound weakened against the other major currencies in the early European session on Thursday, after data showed that U.K. retail sales declined unexpectedly in June.

Data from the Office for National Statistics showed that U.K. retail sales, including automotive fuel, declined 0.2 percent from prior month, reversing a 0.3 percent rise in May. This was the first drop in three months. Sales were expected to grow 0.4 percent.

On a yearly basis, growth in retail sales including automotive fuel eased unexpectedly to 4 percent from 4.7 percent in May. Economists had expected 4.8 percent expansion.

The pound fell to 9-day lows of 0.7055 against the euro and 1.4865 against the Swiss franc, from early highs of 0.6988 and 1.4994, respectively.

Pulling away from an early 6-day high of 1.5669 against the U.S. dollar, the pound dropped to 1.5583.

Against the yen, the pound edged down to 192.91 from an early high of 193.90.

If the pound extends its downtrend, it is likely to find support 0.72 around against the euro, 1.46 against the franc, 1.53 against the greenback and 188.00 against the yen.

The material has been provided by InstaForex Company – www.instaforex.com

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