Release Explanation: Retail sales are a very important set of figures that make up a large percentage of consumer spending numbers. Retail sales are the measure of the total sales of goods and services by retail stores. Retail Sales is an important measure of consumer spending and inflationary pressures.

Trade Desk Thoughts: Retail sales in U.K. fell in February, following two months of unexpected increases, while the annual growth rate fell to 0.4% - the lowest since September 1995. Between January and February, total sales volume fell by 1.9%. This time, however, the declines were widespread over every sector.

The small stores component, known as other stores decreased by 4.8%, the largest monthly decrease since 1986, when records first began. The seasonally adjusted value of retail sales for the three months to February was 1.9 per cent higher than in the same period a year earlier and February was 0.4 per cent higher than in February 2008.

Forex Technical Reaction: The pound fell 40 pips after the release, but the move was retraced very fast. During the European session, the pound traded in a close range, trading near the neutral pivot point (1.4595)