The pound fell to a 10 month low against the Dollar during yesterday’s session after the Office for National Statistics revealed retail sales unexpectedly fell by 0.5% last month. Economists forecast a 0.2% rise however figures revealed that while the World Cup and hot weather helped barbecue, food and drink sales, they also kept shoppers away from high streets. Clothing stores and other non-food retailers suffered from reduced footfall amid the hot weather and football celebrations.
The latest snapshot from the ONS will add further pressure on the Bank of England to delay an expected rise in interest rates next month. Data this week has shown retail sales fell in June, inflation was flat at 2.4% and wage growth slowed casting doubt on whether interest rates will rise next month as the probability has fallen from 80 to 50%.