Forex News: Pound Falls As U.K. Retail Sales Rise Less-than-expected

Pound Falls As U.K. Retail Sales Rise Less-than-expected

(RTTNews) - The British pound weakened against most major currencies in the European session on Friday, as U.K. retail Sales grew at a slower-than-expected pace in June.

Data from the Office for National Statistics showed that U.K. retail sales recovered in June as warm weather boosted food and non-food store sales. Retail sales grew 0.9 percent on a monthly basis, in contrast to the revised 2.8 percent drop in May. However, this was weaker than economists' forecast of 1.2 percent gain.

Sales advanced 1.7 percent from the previous year, following a 1.1 percent decrease in May. This was slightly weaker than forecast of 1.8 percent.

Excluding auto fuel, retail sales advanced 0.6 percent, reversing a 2.9 percent drop in May. Economists had forecast an increase of 1.2 percent.

Traders focus to the Fed and BoJ meetings due next week, with both expected to hold rates steady.

As part of the Labour Party's manifesto, the U.K. and India sign a Free Trade Agreement.

In the European trading today, the pound fell to more than a 3-month low of 0.8728 against the euro, from an early high of 0.8697. If the pound extends its downtrend, it is likely to find support around 0.88 against the euro and 1.32 against the greenback.

Against the U.S. dollar and the Swiss franc, the pound slid to a 4-day low of 1.3451 and a 3-day low of 1.0714 from early highs of 1.3512 and 1.0755, respectively. The pound may test support near the 1.06 region.

Meanwhile, the pound rose to a 2-day high of 199.08 against the yen, from an early high of 198.14. The next possible upside target for the pound is seen around the 200.00 region.

Looking ahead, U.S. durable goods orders for June, Canada budget balance for May and U.S. Baker Hughes oil rig count data are slated for release in the New York session.

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