Pound Slides As U.K. Retail Sales Fall More Than Forecast

(RTTNews) - The British pound weakened against other major currencies in the European session on Friday, after data showed that U.K. retail sales declined more than expected in April as poor weather reduced footfall.

Data from the Office for National Statistics showed that the retail sales volume dropped 2.3 percent on a monthly basis, following a revised 0.2 percent drop in March. Economists had forecast a 0.5 percent drop for April.

The ONS said sales decreased across most sectors, with clothing retailers, sports equipment, games and toys stores, and furniture stores doing badly as poor weather reduced footfall.

On a yearly basis, retail sales decreased 2.7 percent, in contrast to the 0.4 percent increase in March. Sales were forecast to drop only 0.2 percent.

Excluding auto fuel, retail sales slid 3.0 percent, bigger than economists' forecast of 1.1 percent fall.

European shares traded lower, as investors pushed back the timing of first rate cut by the U.S. Federal Reserve to December.

Atlanta Fed President Raphael Bostic said on Thursday that there is still considerable upward pressure on prices and the U.S. central bank may need to wait longer to cut interest rates.

The British sterling held steady against its major rivals in the Asian trading today.

In the European trading now, the pound fell to a 9-day low of 1.2677 against the U.S. dollar, from an early high of 1.2703. The pound may test support near the 1.24 region.

Against the yen, the euro and the Swiss franc, the pound edges down to 199.06, 0.8528 and 1.1602 from early highs of 199.45, 0.8515 and 1.1618, respectively. If the pound extends its downtrend, it is likely to find support around 193.00 against the yen, 0.86 against the euro and 1.14 against the franc.

Looking ahead, Canada retail sales data for March and manufacturing sales for April, U.S. goods orders for April, U.S. University of Michigan's final consumer sentiment for May and U.S. Baker Hughes weekly oil rig count data are slated for release in the New York session.