Forex — Sterling Hits day’s lows on Weak UK retail sales data

© Reuters. Sterling hits day’s lows on weak UK retail sales data — The pound fell to the day of the lows on Thursday after data showing that U.K. retail sales slowed down in September, added that the economy is losing momentum.

GBP/USD was GMT, down 0.42% at 1.3152 05:22 PM ET (AT 09:22) from all over the 1.3180 ahead of the report.

Retail sales fell by 0.8% in the last month, the Office for National Statistics said, confounding forecasts for a decline of 0.1%.

Non-food stores, the largest decline in the revenue, the said ONS suffered.

In comparison to the previous year the sales figures have risen by only 1.2%, significantly below expectations of a 2.1% rise.

The report also showed that shop prices rose by 3.3% compared to the previous year, the largest increase since March 2012.

The rising inflation, largely driven by the fall in the pound since last year, is a British EU exit vote, has led to pressure on the expenditure of households. The latest UK jobs report, released on Wednesday, showed that wage growth still lags behind inflation.

The weak data added to doubts about the prospects for a rate hike by the Bank of England in the coming months.

Sterling was also lower against the euro, with EUR/GBP increased from 0.53% to 0.8973 from around 0.8940 before.

In the euro-zone, investors continue to monitor, to dispense with the confrontation between Catalonia and Spain, as the deadline set by Madrid in the region, its independence, his plans to pass.

The Spanish government is willing to suspend Catalonia’s autonomy and impose direct rule in the region, President Carles Puigdemont refused to abandon the push for independence.

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