News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex News: UK Retail Sales Drop at Start of Q4

Forex News: UK Retail Sales Drop at Start of Q4

Benjamin Spier, Technical Strategist

THE TAKEAWAY: UK retail sales drop 0.7% in October, sharpest decline in 6-months -> Consumers spend less at start of Q4 -> Sterling trading steady

UK retail sales declined at the sharpest rate in 6 months according to the UK Office of National Statistics. Retail sales (excluding auto fuel) in October were reported at -0.7% versus an expected 0.1% decline, and lower than September’s revised 0.5% rise in retail sales. Retail sales in October were 1.1% higher than October 2011.

The average weekly spending on UK retail sales in October was 6.8 billion Pounds, compared with 6.6 billion in September. Internet sales were 0.5% higher in October.

Just yesterday, the Bank of England inflation report said they expect the UK economy to continue to experience pressure from the Euro debt crisis and predicted a possible decline in Q4 GDP. This economic release indicates a drop in consumer spending during the first month of Q4.

Although the results were worse than expected, Sterling did not sustain any losses in currency markets, possibly experiencing a pickup from a simultaneous rise in Euro. GBPUSD is currently trading slightly below 1.5850 after setting a new 2-month low at 1.5822 earlier in the session. Support might be provided now by the key 1.5800 figure.

GBPUSD 15-minute: November 15, 2012

UK_Retail_Sales_Drop_at_Start_of_Q4_body_gbpusd.png, Forex News: UK Retail Sales Drop at Start of Q4

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES