The Pound dropped to 1.16 against the Euro and lost over 0.5% against the US Dollar following the release of the UK’s retail sales figures for January.
It had been forecast that monthly retails sales would print at 0.7% in January after falling by -2.0% in December, but sales actually slumped by -0.3% month-on-month.
Sales also slowed to 1.5% on the year, down from a revised 4.7% in December and defying forecasts for a reading of 3.9%.
UK retail sales had a horrible month in January
https://t.co/a00MFdoNy1
pic.twitter.com/IfAxRn8D1G
— BI UK Finance (@BIUK_Finance)
February 17, 2017
UK Retail Sales worst since 2013. Inflation doing the damage? Bad sign for ‘17GDP growth.
#BoE
just raised ‘17GDP forecast! Badly timed!
pic.twitter.com/5nIXfgUwRr
— Piers Curran (@pierscurran)
February 17, 2017
The Office for National Statistics (ONS) was quoted as saying; ‘In the three months to January 2017, retail sales saw the first signs of a fall in the underlying trend since December 2013. The evidence suggests that increased prices in fuel and food are significant factors in this slowdown.’
After the report was published the interbank Pound Euro exchange rate dropped from 1.1737 to 1.1659 and the interbank Pound US Dollar exchange rate slumped from 1.2511 to 1.2400.
The Pound also fell against the Australian Dollar, New Zealand Dollar and Canadian Dollar.