The United Kingdom saw a drop in retail sales by 1.2% in June, following a rebound of 2.9% in May. The Core Retail Sales, which excludes auto motor fuel sales, also experienced a decline of 1.5% MoM. The annual retail sales for the UK fell by 0.2% in June, with the Core Retail Sales decreasing by 0.8% compared to the previous month. These figures were lower than market expectations, causing concern among investors.
Despite the disappointing UK retail sales data, the GBP/USD remained relatively stable around 1.2935. The British Pound also showed weakness against the Canadian Dollar in comparison to other major currencies. The percentage change of the Pound was negative against the USD, EUR, JPY, and CAD, indicating a lack of strength in the currency.
The market reaction to the UK retail sales report was relatively muted as GBP/USD remained flat. The lack of significant movement in the currency pair suggests that investors may be waiting for further economic indicators before making any trading decisions. The percentage change of the British Pound against other major currencies also reflected the currency’s weaker position in the market.
Overall, the drop in UK retail sales in June has raised concerns about the country’s economic recovery post-pandemic. The decline in both overall retail sales and core retail sales indicates a slowdown in consumer spending, which could have a negative impact on economic growth. Investors will be closely monitoring future economic data releases to assess the health of the UK economy and its impact on the British Pound.
