Disastrous retail sales figures reveal the fragility of consumer confidence

- Pound falls to 2 month low against US dollar in response to the news -

London, 17 Dec 2009

British Retail Sales figures fell unexpectedly in November, dropping 0.3 pc and defying analysts’ expectations for a growth of 0.4 pc.

Sterling plummeted off the back of the news, hitting a 2 month low against the US dollar, dropping almost a cent lower from $1.6220 to $1.6122. Against the euro, the pound fell only slightly, dropping from €1.1250 to €1.1220.

Mark Bolsom, Head of UK Trading Desk at Travelex, the FX payments specialist, said the news will come as a significant blow to those hoping for further evidence that the UK is emerging from recession but has no real implication for Sterling’s short term outlook: “All data coming out of the UK is so mixed at the moment that this specific news won’t have a disastrous impact on Sterling.

“Retail sales figures were disappointing because consumer confidence is still very fragile. Not only is the UK the last major economy left in recession, the prospect of tax increases and public spending cuts have left the public feeling exposed.

Bolsom continues, “Chancellor Darling has repeatedly failed to outline his plan to halve our ballooning deficit and economic data continues to be mixed. Consumers remain uncertain of their economic future and unfortunately for the UK’s retailers have acted accordingly – saving, not spending.”

– Ends –

Media enquiries
Jessica Buttress
Head of PR for Travelex Global Business Payments UK
0208 415 4204
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Jessica.buttress@travelex.com

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About Travelex

Founded in 1976, Travelex is the world’s largest non-bank foreign exchange and payments specialist; with operations across four continents and 6,000 employees worldwide.

Travelex holds key positions in its three main areas of activity: Global Business Payments (TGBP, which includes Travelex Personal Payments), Currency Services and Card and Mobile Payments. Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements.

Recently recognised by TowerGroup research as Industry Leader for payments innovation for SMEs, Travelex currently handles international payments for over 750 large corporate and financial institutions.

Visit www.travelexbusiness.com/uk for more information or email the press office at Jessica.Buttress@travelex.com