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GBP/CAD has had several ups and downs during the Thursday session. At some point, the pair managed to gain 0.35% from its daily low to the recent peak, but it wasted the greatest part of the gain after the UK released retail sales data.
Currently, one British pound buys 1.7037, still up 0.08% as of 10:33 AM UTC. The sterling manages to remain stronger despite a set of disappointing UK economic data this week. This is because the Loonie is under pressure amid unclear trade negotiations between the US and China.
UK Retail Sales Decline
The British consumers bought less in October, according to data from the Office for National Statistics (ONS). UK retail sales declined last month by 0.1% from September, while economists expected a 0.2% increase. Sales excluding auto fuel fell 0.3%. Thus, retail sales growth over the last three months was the weakest in over one and a half years.
The ONS data shows that British consumers are more reserved when it comes to spending, as the Brexit uncertainty has intensified before the early election scheduled for December 12. UK Prime Minister Boris Johnson called for an early national poll in the hope to consolidate the power of his Conservative Party and handle the exit plan without being worried about the Parliament’s impediments.
The disappointing retail sales data comes after a series of other downbeat economic data, with the UK’s gross domestic product (GDP) growing at its weakest pace since 2010. Elsewhere, the number of employed citizens fell dramatically.
Previously, a strong labor market and consumer spending have supported the UK’s economy since the Brexit referendum, offsetting losses from lower investment and declining manufacturing figures amid the Sino-US trade conflict.
Lynda Petherick, head of retail at Accenture, commented:
“These latest ONS figures are symptomatic of the challenges facing the retail sector after a year fraught with uncertainty.”
Separately, a survey carried out by the Royal Institution of Chartered Surveyors (RICS) showed that the house price index fell from -3 in September to -5 in October. Analysts polled by Reuters expected a slight decline to -4.
