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 fell 3.3 percent on a like for like basis and dropped 1.4 percent on a total basis from December of 2007. This has been the worst December figures seen since the survey was started 14 years ago. The only sectors to advance over the year were food and footwear while clothing, furniture, and homewares all declined. It was noticed that Christmas buying came later than usual in the month as consumers waited for more discounts and early clearance sales.

Forex Technical Reaction: After the 350 pip fall seen during Mondays session the pound is trading between the neutral LFB pivot point and the S1 level after a slight decline from this report. The pair is currently trading at 1.4775.