Retail Sales weigh on Pound

This morning’s retail sales figures were much worse than expected, causing a sharp decline in the Pound and exchange rates.

Growth slowed to 0.4% last month, compared with a 3.6% rise in January.

Slowing retail sales will worry analysts as a sign of deepening recession, adding to deflationary fears. This is on the back of the government’s failed auction of bonds yesterday which added to the doom and gloom in the UK.

The Pound has fallen nearly a cent against the dollar and euro, although commercial exchange rates are still better than 10 days ago.