Unexpected Decline of UK Retail Sales Leads to Drop of Sterling

Lately, the Great Britain pound has been struggling to continue its rally, and economic data released from the United Kingdom today did not help the matter at all. UK retail sales dropped unexpectedly last month, leading to losses of the currency against major rivals.

Retail sales were down 0.2 percent in June from May following the 0.3 percent gain in the previous reporting period. It was a nasty surprise to the majority of traders who were counting on an increase by 0.4 percent. As a result, the sterling dropped, though the decline was not big enough to erase yesterday’s gains.

GBP/USD declined from 1.5611 to 1.5599 as of 9:22 GMT today, retreating from the daily high of 1.5697. GBP/JPY fell from 193.44 to 193.20.

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