Pound Slides Sixth Day Versus Dollar on Retail Sales; Gilts Gain
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The pound weakened for a sixth day against the dollar after a government report showed U.K. retail sales unexpectedly declined in December, adding to signs the economy is struggling to recover.
Sterling dropped to a nine-month low versus the euro after excerpts from a proposed speech by Prime Minister David Cameron raised the specter of Britain exiting the 27-nation European Union. U.K. government bonds advanced. Bank of England policy maker Ian McCafferty said that officials must have an open mind about ways to help the economy, signaling he may support new stimulus measures.