Sterling tumbles against the Dollar after UK retail sales data

Sterling pared early gains versus the dollar and euro on Thursday, after data showed UK retail sales were much weaker than expected in February. But the currency found some support with analysts saying the sharp sell-off after Britain suffered its first failed gilt auction since 2002 the previous session had been overdone. British retail sales plunged more than expected in February as snowy weather and dismal economic conditions kept consumers away from the shops. "Sterling has been coming off after the retail sales. It's just a straight standard reaction to much weaker-than-expected data," Bank of Scotland Treasury Services currency analyst Naeem Wahid said. The GBP/USD is currently trading at $1.4430 as of 8:50am, GMT.

The financial crisis has shown the need for a new international monetary system and creating a global currency should be the main priority as this would prevent “excessive” money printing by any single nation, which poses a risk to inflation worldwide, Wang wrote in the article published today in the Chinese-language newspaper. State-controlled Bank of China is the world’s third-largest bank by market value. The U.S. has adjusted its monetary policy to suit the needs of its own economy, without regard for the impact it has on liquidity and inflation overseas, Wang wrote.

The Australian and New Zealand dollars headed for their biggest monthly advances against the greenback in more than 20 years, as commodities prices and global equities rallied, boosting demand for the nations’ assets. The currencies advanced for a fourth week as investors pare expectations of further Australian and New Zealand interest-rate cuts and policy makers in the U.S., U.K. and Japan flood their economies with cash to hold down borrowing costs. New Zealand’s dollar climbed as a report showed the economy shrank less than some economists forecast. “There has been a clear strengthening trend in commodity prices and that’s helping boost commodity currencies, particularly those like Australia and New Zealand where the central banks are a long way away from entering quantitative easing,” said John Horner, a currency strategist at Deutsche Bank AG in Sydney. The AUD/USD is currently trading at 0.6986 as of 9:20am, GMT.

Today's Economic Events