The Pound Sterling Exchange Rate was in the region of 1.1606 against the Euro as of 10:10 am
Prior to the release of UK retail sales data the Pound was able to break free from its recent run of declines against the US Dollar, posting a modest advance.
With economists predicting a 0.5 per cent rise in UK sales including fuel, Sterling also climbed slightly higher against the Euro.
Although in December retail sales dropped by a negatively revised 0.3 per cent, industry experts were widely expecting last month’s figures to show improvement.
As one foreign exchange strategist stated: ‘We had weak retail sale numbers in December and the market is expecting some kind of bounce today. It’s about whether they surprise versus consensus. If the numbers disappoint, then the pound will get a bit of a knock.’
Unfortunately the figures did disappoint, and the Pound began to decline against several of its most traded peers. The British currency is likely to post additional losses in the hours ahead.
Data compiled by the Office for National Statistics has shown that in January sales dropped by 0.6 per cent. They were also down by 0.6 per cent compared to the same period of the previous year.
The poor weather was one of the main reasons cited by the statistics office for this disheartening result.
After the report was published IHS Global Insight economist Howard Archer commented: ‘Clearly, the snow and ice affected footfall as people were unable, or unwilling, to go to the shops. A concern for retailers, and the economy in general, is that consumer’s purchasing power has come under some renewed pressure.’
The high-street was also affected by the implosion of several well-known store chains, including Jessops.
Although the many post-Christmas price cuts helped clothing and shoe sales increase by 0.4 per cent, the report detailed a 1.6 per cent fall in food sales – a drop which can’t be blamed on the horse-gate scandal. There was also a 0.3 per cent drop in the sale of household goods and a 2 per cent decline in auto fuel sales.
With fuel taken out of the equation, retail sales in January were 0.5 per cent lower than in December, but up 0.2 per cent from January of 2012.
This data supports comments made earlier in the week by the Bank of England. In its quarterly inflation report the central bank asserted: ‘Relative to previous recoveries, consumer spending remains weak. The peak-to-trough fall in consumption was larger during this recession than previous ones, and the recovery has been more subdued.’
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1606
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5484
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.4959
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8215
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5519
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.6868
The Pound Sterling to Swiss Franc is currently trading at 1.4270
The Pound Sterling to Japanese Yen exchange rate is currently trading at 143.2400
These exchange rates were correct as of 10:10 am
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