Pound drops most in two weeks as retail sales unexpectedly fall
[BUDAPEST] The pound dropped by the most in more than two weeks as a report showed retail sales unexpectedly fell for a third month in January.
The decline left the currency poised to close below its 55-day moving average versus the US dollar for first time in almost a month.
Retail sales dropped 0.3 per cent, following a 2.1 per cent plunge in December, the Office for National Statistics said on Friday, confounding market expectations for a one per cent increase. UK government bonds climbed after the report, leading a rally in global core securities.
The pound dropped 0.7 per cent to US$1.2398 as of 10.19am in London. The 55-day moving average is at US$1.2425 The pound may find support at US$1.2383, the Feb 15 low, and US$1.2346, the 50 per cent retreat of the move between Jan 16-Feb 2. The yield on UK 10-year gilts fell five basis points to 1.21 per cent.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover