The Great Britain pound after the data showed that retail sales dropped last month, unpleasantly surprising market analysts and confirming the weakness of Britain’s economy. The currency fell to the lowest closing price since March.
Retail sales fell 0.1 percent in December after showing no growth in the month before. Experts have hoped for an increase of 0.2 percent. Year-on-year, sale grew 0.3 percent. That was almost the worst December growth since 1998.
The poor data was just another confirmation that the UK economy is far from being good. The problem is that there is no clear way to improve it. For many policy makers nowadays quantitative easing is the answer to that issue, but many economists began to question such practice as it often shows its ineffectiveness.
GBP/USD fell from 1.5990 to 1.5873 yesterday — the lowest close since November 15. GBP/JPY declined from 143.68 to 142.92. EUR/GBP climbed from 0.8358 to 0.8388 — the strongest closing price since March 12.
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