Breaking: GBP/USD drops below 1.3100 after UK Retail Sales drop 0.6% MoM in Dec vs. +0.7% expected
|
- The UK Retail Sales drop 0.6% MoM in December.
- The UK core Retail Sales fall 0.8% MoM in December.
The UK retail sales came in at -0.6% over the month in December vs. +0.7% expected and -0.8% previous. The core retail sales, stripping the auto motor fuel sales, stood at -0.8% MoM vs. +0.5% expected and -0.8% previous.
On an annualized basis, the UK retail sales rose 0.9% in December versus +2.6% expected and +0.8% prior while the core retail sales also advanced 0.7% in the reported month versus +0.6% previous and +2.9% expectations.
Main Points (via ONS):
“All sectors except household goods stores and fuel saw a decline in the quantity bought for the three-month on three-month movement; driven mainly by non-food stores at negative 1.0%.
The quantity bought in food stores fell by 1.3% for the monthly growth rate, which was the largest fall since December 2016, also at 1.3%.
Online sales as a proportion of all retailing was 19.0% in December 2019, compared with the 18.6% reported in November 2019.
FX Implications:
GBP/USD came under heavy selling pressure and eroded over 50-pips on the UK Retail Sales downside surprise. The spot now tests the 1.3050 level, having failed to resist the upside above the 1.31 handle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.