Pound Drops On Disappointing Retail Sales
The pound fell sharply against the dollar and euro mid-morning Thursday after the release of figures showing that UK May retail sales unexpectedly fell by 0.6%. Analysts were looking for a 0.3% gain which would have been a third straight month of improvement.
Meanwhile, calls for spending to be curbed by Chancellor of the Exchequer Alistair Darling will put added pressure on Prime Minister Gordon Brown as the government continues to increase its debt in an attempt to spur an economic recovery.
Guarded comments from BoE Governor Mervyn King about the timing of an economic recovery also saw investors shy away from UK assets.
The pound briefly fell below $1.62 shortly after the retail sales figures were released before stabilising later in the day around $1.6250. Against the euro sterling stumbled to around 1.1650, having traded above 1.18 yesterday.
Meanwhile, calls for spending to be curbed by Chancellor of the Exchequer Alistair Darling will put added pressure on Prime Minister Gordon Brown as the government continues to increase its debt in an attempt to spur an economic recovery.
Guarded comments from BoE Governor Mervyn King about the timing of an economic recovery also saw investors shy away from UK assets.
The pound briefly fell below $1.62 shortly after the retail sales figures were released before stabilising later in the day around $1.6250. Against the euro sterling stumbled to around 1.1650, having traded above 1.18 yesterday.
