UK pound is lower today, falling as growth concerns weigh on the British currency. Worries about whether or not the United Kingdom is ready to grow its way out of its current funk are dominating after the latest retail sales data.
The British Retail Consortium is reporting that the Christmas sales for retailers at the end of 2012 rose only a little bit. This news indicates that shoppers aren’t quite ready to give the economy the boost it needs. This news has been sending the pound lower, even though there was an increase in positive business sentiment.
For now, the UK pound is heading lower as a result of concerns about growth. However, some of the losses might be limited, since more data is coming. Trade balance data is expected tomorrow, and that will provide some help for the pound — if it shows improvements. And, of course, on Thursday the Bank of England policymakers will be meeting. Interest rates and the current asset purchase program are expected to remain the same, but there might be helpful insights and announcements from members of the MPC.
At 15:10 GMT GBP/USD is down to 1.6049 from the open at 1.6116. EUR/GBP is up to 0.8150 from the open at 0.8139. GBP/JPY is down to 140.0850 from the open at 141.4850.
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