Sterling drops after British retail sales miss forecasts
On Thursday, the British pound slumped, after data showing that British retail sales were moderately weaker than expected the previous month, while consumer sentiment remained firm in the aftermath of Brexit.
The currency pair GBP/USD decreased to 1.2260 from about 1.2275 ahead of the news.
Retail sales stood still in September, the Office for National Statistics reported, compared to forecasts for a 0.4% surge.
On an annual basis, retail sales headed north 4.1%, weaker than expected.
The ONS announced that the largest monthly drops in sales were of clothing as well as footwear as higher prices and also warmer September weather affected demand.
August’s figures were revised up to demonstrate annual growth of about 6.6%. It simply means that third quarter retail sales rose 5.4%, showing the strongest growth since August 2014.
The ONS informed that the underlying trend in retail sales was still strong, thus indicating that consumer confidence has remained stable since June’s referendum.