The Euro weakened against the Pound on Friday after a weaker than expected UK retail sales report failed to dent optimism in the nation’s economic recovery.
According to the report released by the Office for National Statistics retail sales in the UK decreased by 1.5% last month, a sharper than expected decline than the 1% fall forecast. Sales for December were also revised downward to 2.5% from 2.6%. Yearly sales also came in below forecasts with sales rising by 4.3% last month compared to expectations for a figure of 5%.
The report showed that food sales fell by 3.4% and sales of clothing, footwear and textiles dropped by 3.5%, the biggest decline seen since April 2012.
The fall in retail sales was being blamed on the poor winter weather.
A separate report showed that the UK’s budget surplus was smaller than anticipated as income from taxes and company profits fell. The surplus of £4.7 billion was less than the expected £8 billion. Again the decline was likely to have been a result of the bad weather.
The Euro meanwhile was having a quiet session due to the lack of key data out of the Eurozone. What data there was released matched economist forecasts. Italy posted its latest inflation rate data. Year-on-year inflation was at 0.7%, unchanged from the previous months figure and matched expectations. On a monthly basis it stood at 0.2%, again meeting forecasts.
The Euro could see movement if today’s US existing home sales data come in below expectations. The single currency could gain some ground.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3708,
Euro,, Pound Sterling,0.8222 ,
Euro,,Australian Dollar,1.5232 ,
Euro,,Canadian Dollar,1.5303 ,
[/table]
