Weaker Than Expected UK Retail Sales Send Cable Into The Red

By David Schutz,

THE TAKEAWAY: UK February retail sales weaker than expected -> UK struggles with inflation outpacing wage growth -> Cable plummets on weak data

Retail sales in the UK fell 0.8% this past February, the British stats office said today. The drop was steeper than the 0.5% decline predicted by economists. Cable sold off on the news.

As Exchequer Chancellor George Osborne wrangles with political opponents about a proposed scrapping of the UK top tax bracket in the UK budget set for release this week, the Bank of England yesterday warned of “substantial, clear” inflation risks in the short term as political tensions continue to boost oil prices and erode consumer confidence. The BOE continues to attempt to juggle lagging growth with inflation risks.
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Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/22/Weaker_than_Expected_UK_Retail_Sales_Send_Cable_into_the_Red.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.