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Pound Falls On Disappointing U.K. Retail Sales, PMI Data
(RTTNews) - The pound declined against its major counterparts in the European session on Friday, as the nation's retail sales grew less than expected in August and business activity shrank to a 32-month low in September.
Data from the Office for National Statistics showed that U.K. retail sales rose 0.4 percent in August, weaker than expectations of a 0.5 percent rise.
On a yearly basis, retail sales declined 1.4 percent versus forecast of 1.2 percent fall.
Sales excluding auto fuel dropped to 1.4 percent after a 3.3 percent fall last month. Economists had forecast a decline of 1.3 percent.
Data from S&P Global and the Chartered Institute of Procurement & Supply showed that U.K. composite PMI declined to 46.8 in September from 48.6 in August and below expectations of 48.7.
U.K. services PMI fell to 47.2 from 49.5 last month. The score was also below economists' forecast of 49.2.
The pound weakened to near a 6-month low of 1.2233 against the greenback and more than a 2-month low of 0.8695 against the euro, off its early highs of 1.2295 and 0.8657, respectively. The next possible support for the pound is seen around 1.20 against the greenback and 0.88 against the euro.
The pound eased to 1.1082 against the franc and 181.31 against the yen, from its early highs of 1.1122 and 182.30, respectively. The pound is seen finding support around 1.09 against the franc and 176.00 against the yen.
Looking ahead, Canada retail sales data for July and manufacturing sales data for August and U.S. flash PMI reports for September are set to be published in the New York session.
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