Sterling is trading at its lowest levels in a month against both the dollar and euro, after UK retail sales unexpectedly fell sharply in July. The Office for National Statistics (ONS) report showed retail sales volumes dropped by 2.5% month to month. Economists had been expecting a 0.4% increase in this period. The ONS said retailers had said the combination of Euro 2020 and bad weather had kept shoppers away from shops in July.
The Euro has consolidated at the 9 month low hit yesterday against the dollar. It is down nearly 1% on the week, its biggest weekly loss since mid-June. Some boost was given to the single currency on the release of German Producer Price Index which beat expectations coming at 1.9% against the 0.8% expected.
The safe haven dollar hit fresh 9 month highs against its major peers on Friday. The dollar index, boosted by expectations that the Federal Reserve bank will begin to taper its bond buying scheme in the last quarter, rose as high as 93.5697. It is on track to gain over 1% on the week, the most in almost 2 months. After major gains against both the pound and euro this week, it is also up over 3% against the Australian dollar, 2.85% against the New Zealand dollar and is trading at a 6 month high against the Canadian dollar.
Very light on economic data today, with no major releases