Investing.com - The pound fell to session lows against the dollar on Thursday after data showed that retail sales in the U.K. unexpectedly declined in October, dampening optimism over the outlook for the economic recovery.
GBP/USD fell 0.42% to 1.5989 during European morning trade, down from 1.6054 on Wednesday.
Cable was likely to find support at 1.5877, Wednesday’s low and resistance at 1.6064, the session high.
Sterling slid after the Office for National Statistics said retail sales fell 0.7% in October, against expectations for a 0.1% gain. Retail sales rose by 0.6% in September.
Retail sales were up 1.8% on an annualized basis, well below expectations for a 3.1% gain, after rising at an annual rate of 2% in September.
Core retail sales, which exclude automobile sales, declined 0.6% in October, worse than forecasts for a 0.2% drop, after increasing 0.8% in the preceding month.
The weak data came one day after the Bank of England brought forward the date it expects the unemployment rate to hit the 7% threshold at which it will consider raising rates and revised up its forecast for growth in its quarterly inflation report.
The BoE said it now expects economic growth of 1.6% this year, up from 1.4% in August and growth of 2.8% in 2014, up from 2.5%. The bank still expects growth of 2.3% in 2015.
Meanwhile, speculation over the course of U.S. monetary policy continued following dovish comments from Federal Reserve Chairman nominee Janet Yellen. In a statement released late Wednesday, Yellen said the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Sterling was little changed against the euro, with EUR/GBP edging up 0.05% to 0.8403.
In the euro zone, data released on Thursday showed that the French economy unexpectedly contracted in the third quarter, while the Germany economy expanded in line with forecasts.
Preliminary data showed that the French economy contracted by 0.1% in the three months to September, slowing from the 0.5% growth recorded in the second quarter. Economists had forecast growth of 0.1%.
Germany's economy grew by 0.3% in the third quarter, slowing from the 0.7% growth achieved in the second quarter. On a year-over-year basis, Germany’s economy grew 1.1%, beating forecasts for annual growth of 0.7%.
The wider euro zone was to release preliminary data on growth rates later in the trading day.
GBP/USD fell 0.42% to 1.5989 during European morning trade, down from 1.6054 on Wednesday.
Cable was likely to find support at 1.5877, Wednesday’s low and resistance at 1.6064, the session high.
Sterling slid after the Office for National Statistics said retail sales fell 0.7% in October, against expectations for a 0.1% gain. Retail sales rose by 0.6% in September.
Retail sales were up 1.8% on an annualized basis, well below expectations for a 3.1% gain, after rising at an annual rate of 2% in September.
Core retail sales, which exclude automobile sales, declined 0.6% in October, worse than forecasts for a 0.2% drop, after increasing 0.8% in the preceding month.
The weak data came one day after the Bank of England brought forward the date it expects the unemployment rate to hit the 7% threshold at which it will consider raising rates and revised up its forecast for growth in its quarterly inflation report.
The BoE said it now expects economic growth of 1.6% this year, up from 1.4% in August and growth of 2.8% in 2014, up from 2.5%. The bank still expects growth of 2.3% in 2015.
Meanwhile, speculation over the course of U.S. monetary policy continued following dovish comments from Federal Reserve Chairman nominee Janet Yellen. In a statement released late Wednesday, Yellen said the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Sterling was little changed against the euro, with EUR/GBP edging up 0.05% to 0.8403.
In the euro zone, data released on Thursday showed that the French economy unexpectedly contracted in the third quarter, while the Germany economy expanded in line with forecasts.
Preliminary data showed that the French economy contracted by 0.1% in the three months to September, slowing from the 0.5% growth recorded in the second quarter. Economists had forecast growth of 0.1%.
Germany's economy grew by 0.3% in the third quarter, slowing from the 0.7% growth achieved in the second quarter. On a year-over-year basis, Germany’s economy grew 1.1%, beating forecasts for annual growth of 0.7%.
The wider euro zone was to release preliminary data on growth rates later in the trading day.