UK retail sales rose slightly in December, but unfortunately, the figure was significantly lower than market expected.
According to data released by the Office for National Statistics (ONS), UK retail sales rose 0.3% on the month compared to expectations of 1.2% and a contraction of 3.8% previously recorded.
On an annual basis, UK retail sales increased 2.9% in December from expectations of 4.0% and 2.4% previously, while core retail sales increased 6.4% in the month reported against expectations of 7.0% and previously 5.6%.
Those figures undermine the Bank of England's (BOE) statement which previously stated the economy was adjusting to the pandemic situation and it may have been affected by stricter coronavirus restrictions implemented earlier this month.
Following that, the pound, which had already been affected by the resurgence of the US dollar since the beginning of the session, declined lower with trading around the 1.366000 price level.
The focus of European session investors is currently shifting to the manufacturing and services PMI data to be published this afternoon to determine the level of economic health in the European and UK Zones following the implementation of new sanctions.
