Pound Drops Most in Two Weeks as Retail Sales Unexpectedly Fallby
Sterling set to close below 55-DMA for 1st time since January
U.K. 10-year bonds advance a third day after the data
The pound dropped by the most in more than two weeks as a report showed retail sales unexpectedly fell for a third month in January.
The decline left the currency poised to close below its 55-day moving average versus the dollar for first time in almost a month. Retail sales dropped 0.3 percent, following a 2.1 percent plunge in December, the Office for National Statistics said on Friday, confounding market expectations for a 1 percent increase. U.K. government bonds climbed after the report, leading a rally in global core securities.
- The pound dropped 0.7 percent to $1.2398 as of 10:19 a.m. in London. The 55-day moving average is at $1.2425
- The pound may find support at $1.2383, the Feb. 15 low, and $1.2346, the 50 percent retreat of the move between Jan. 16-Feb. 2
- The yield on U.K. 10-year gilts fell five basis points to 1.21 percent