Forex News: UK Retail Sales Fail to Rise in Troublesome Quarter
THE TAKEAWAY: UK retail sales are unchanged in November -> Amount spent on retail sales drops 0.1% -> Sterling trading relatively unchanged
The amount of goods bought in the UK was unchanged between the months of October and November according to the UK Office for National Statistics. The lack of change in retail sales was worse than the expected 0.4% growth but better than October’s revised 0.7% drop in retail sales. Retail sales were 0.9% higher than November 2011.
The amount of money spent on retail sales fell 0.1% in November, but was up 1.5% when compared to November 2011. However, prices of goods rose 0.5% from November 2011. 711 million Pounds were spent online in November, compared to 658 million in November 2011.
The Bank of England has recently announced that they see possible negative growth in the fourth quarter, as the rise in Q3 was due to one time factors. The retail sales show no rise in consumer spending for the first two of the three months of the final quarter.
However, Sterling trading in forex markets was not significantly affected by the disappointing retail sales. GBPUSD is currently trading around 1.6260 and may continue to see resistance by the current yearly high of 1.6309.
GBPUSD Daily: December 20, 2012