Weak UK Retail Sales Data Places GBP/EUR Exchange Rate 'At Risk'

April 18, 2013 - Written by Minesh Chaudhari

STORY LINK Weak UK Retail Sales Data Places GBP/EUR Exchange Rate 'At Risk'

Market focus has settled on the USA over the past 24hrs. The latest edition of the Federal Reserve’s Beige Book was published yesterday and it made for positive reading for investors with interests in the States. The US Central Bank stated that the outlook for the largest economy in the world has improved and that the vast American economy has expanded at a ‘moderate pace’ during the last three months. The news would appear to make a winding-down of its QE programme from the Fed more likely by the end of 2013. Such a move would surely

Meanwhile, last night brought news of another explosion in mainland USA, following Sunday’s atrocity which occurred close to the finish line of the Boston Marathon. This time the incident, which left an as yet unconfirmed number dead including several firefighters, occurred in a fertiliser factory in Waco, Texas. At this stage, it would appear that the incident was a tragic accident, however until the authorities in the States confirm this the US Dollar is likely to gain support as institutional investors shift their funds into the ultimate safe haven.

Elsewhere, this morning’s UK Retail Sales data for last month, released within the past few minutes, have revealed that British shop sales were at a significantly lower than anticipated level. The annualised print of 0.4% was well below the expected 0.9% level – dramatically down from February’s counterpart figure of 3.2% (which was also downwardly revised today). The publication of these tame figures has heaped pressure on Sterling, placing the Pound to euro exchange rate (currency : GBP EUR) firmly in the ‘at risk’ category today.

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