UK Retail Sales figures show near zero growth

18 August, 2011


The sales figures came in slightly worse than expected, showing a 0.2 percent increase for the month and zero growth year on year. As a result the pound tailed off against most major currencies although has since rebounded back to trade opening levels. This is a fairly minor data release so the markets will be looking to the array of US data release later today which includes inflation data. Over the past few weeks problems in the US have had an effect on sterling and the Euro so we could well see some volatility during the afternoon session.

Tomorrow we have Public Sector Borrowing figures out at 9.30am which is expected to have reduce dramatically from last month. If this is not the case then it’s likely sterling could be in for further losses in the coming days and weeks. If you have a requirement to send funds abroad, it could be worth getting a rate secured sooner rather than later to protect yourself against any further adverse movements; if you would like to discuss your options please contact us at Currency Index on 0800 043 2623 or 01923 725725.