Unexpected UK retail activity recorded a slump in December as the contagion of the Omicron variant discouraged consumers from shopping.
Most recently, the Office for National Statistics (ONS) reported a 3.7% decline from a revised 1.0% increase in November, and also missed expectations for a 0.6% contraction.
This recorded figure is the biggest drop since January last year when the country was under coronavirus restrictions for the second time due to Delta outbreaks.
It also reflects the impact of the contagion of the new variant, Omicron on consumer spending.
Although restrictions to curb its spread have been lifted, but there are concerns that high inflation, interest rates and taxes will affect consumer incomes this year, have reduced their spending power.
This disappointing reading has pushed the pound to plunge lower than the two -month high it reached last week, bringing it to trade around 1.35700 against the USD.
Meanwhile, US dollar trading changed little as investors awaited the opening of the New York session. However, no major economic data from the United States will be released tonight.
On the other hand, Canadian retail sales data will be the focus of loonie dollar investors who are currently trading declining following the slump in world crude oil prices.
