Pound drops most in two weeks as retail sales unexpectedly fall

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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 US dollar for first time in almost a month.

Retail sales dropped 0.3 per cent, following a 2.1 per cent plunge in December, the Office for National Statistics said on Friday, confounding market expectations for a one per cent increase. UK government bonds climbed after the report, leading a rally in global core securities.

The pound dropped 0.7 per cent to US$1.2398 as of 10.19am in London. The 55-day moving average is at US$1.2425 The pound may find support at US$1.2383, the Feb 15 low, and US$1.2346, the 50 per cent retreat of the move between Jan 16-Feb 2. The yield on UK 10-year gilts fell five basis points to 1.21 per cent.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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