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Forex - GBP/USD hits session lows after U.K. retail sales

Published 04/18/2013, 04:52 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound fell to session lows against the dollar on Thursday after official data showed that U.K. retail sales fell in March, underlining concerns over the outlook for first quarter growth.

GBP/USD hit 1.5218 during European morning trade, the session low; the pair subsequently consolidated at 1.5229, dipping 0.07%.

Cable was likely to find support at 1.5098, the low of April 2 and resistance at 1.5266, the session high.

The Office for National Statistics said U.K. retail sales fell 0.7% in March, slightly less than estimates for a 0.8% decline, as colder than normal weather last month had a negative impact on sales.

Retail sales for February rose by 2.1% as a result of a rebound from earlier cold weather.

Retail sales declined 0.5% year-on-year compared to expectations for a 0.6% drop.

Core retail sales, which exclude automobile sales, declined 0.8% in March, worse than expectations for a 0.6% drop.

The data added to concerns over the threat of a triple-dip recession in the first quarter, after data on Wednesday confirmed that inflation is rising at a faster pace than wage growth.

Sterling hit session lows against the euro, with EUR/GBP rising 0.18% to 0.8563.

Spain was to hold an auction of government bonds later in the day, while the U.S. was to release official data on initial jobless claims and the Philly Fed manufacturing index.



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