Release Explanation: Retail sales are the measure of the total sales of goods and services by retail stores in the U.K. Retail Sales is an important measure of consumer spending and inflationary pressures. Steady increases in retail sales apply significant inflationary pressures to consumer prices. With Retail Trade being the foremost indicator for consumer spending, this figure is extremely important in understanding the U.K. economy.
Trade Desk Thoughts: Retail sales in the United Kingdom declined 1.8 percent, from February of 2008. Sales in the U.K. have fallen back after Januarys clearance driven improvement. Food sales have shown slower growth while non-food sales fell further below the year earlier low. Homewares and big ticket items were also hit hard. However, non-food, non-store sales (ie. Internet, mail order, and phone sales) were up by 12.3 percent from one year earlier.
Forex Technical Reaction: The pound has not had a significant reaction to this news item. The pair has found a level of support in the 1.3760.