The Pound has weakened from its eight month high against the U.S Dollar. A series of factors led to the dip as a report detailing the British housing market showed a drop in property prices for April.
The report shows that the house prices index dropped by 8 points to minus 19 from minus 11 in March. A reading below zero means that surveyors saw more price declines than increases during the month.
The UK also posted a report from the British retail consortium which showed that retail sales declined by 3.3% year-on-year in April. A combination of wet weather and the coldest April since records began were the key contributors to the decline.
BRC Director General Stephen Robertson said: “The wettest April since records began has put a dampener on retailers’ fortunes. Consumers, struggling to balance their household budgets, remain reluctant to spend unless they really have to and the weakening economy is likely to mean people are even more cautious about their finances.”
The news will add further evidence that the UK is in its first double dip recession since the 1970’s after several economic analysts expressed doubt over the Government’s figures. There was further gloom from the UK high street after one of the country’s biggest business’s Clinton Cards was put into administration. On the upside one of the leading supermarkets posted a rise in sales to £24 billion. Sainsbury’s declared it had achieved a yearly profit of £712million.
Further uncertainty from the Eurozone has attributed to the Pounds slight drop against the Euro yesterday. It still remains at its highest point for three years, but the news has slowed its expected strengthening.
With the political situation in Greece expected to get even more complicated it is likely that the pound will continue to strengthen as investors seek a safe haven. Meanwhile, the Euro hit a three month low against the US Dollar today as the situation in Europe continues to spook markets and investors.
The Pound to Euro exchange rate is currently trading at 1.244
The Pound to US Dollar exchange rate is currently trading at 1.608
The Euro to US Dollar exchange rate is currently trading at 1.292
The Euro to Pound exchange rate is currently trading at 0.803
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