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.

FXStreet Team FXStreet

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.

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FXStreet Team

FXStreet

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