Sterling Slides After Weak CBI Report

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Published: Wed, 25 Mar 2009 12:46:53 +0100

Sterling Slides After Weak CBI Report

(CEP News) - The pound sterling is weaker on Wednesday in the aftermath of a larger-than-expected decline in the Confederation of British Industry's retail sales report for February.

According to the CBI, 44% of UK retailers reported that sales had fallen in the three months to March. Economists had expected a reading of -35% after the balance had improved to -25% in February from -47%.

The figure in March reflects the 63% of survey respondents who reported falling retail sales compared to the 19% who said that sales volumes had grown over the quarter.

Across the Channel, Germany's Ifo business climate index fell to a record low of 82.1 in March versus an expected 82.2 reading and February's 82.6 figure. The current assessment index declined to 82.7 from 84.3, compared to expectations for 82.5.

Data taken at 7:45 a.m. EDT.

GBP/USD down 0.97 cents to 1.4585

Euro/GBP up 0.93 pence to 0.9265

GBP/CAD down 1.22 cents to 1.7965

By Erik Kevin Franco, efranco@economicnews.ca, edited by Stephen Huebl, shuebl@economicnews.ca

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