The pound dropped sharply in value against other currencies after a survey by the Confederation of British Industry showed UK high street sales are falling off the charts.
In its distributive trades survey, the CBI said the balance of retail sales came of -36% (the lowest reading since the survey began in July 1983) versus June's -9%. Analysts had expected a more modest fall to -15%.
"The survey... significantly bolsters the case for the Bank of England to hold off from raising interest rates despite current elevated inflation levels and risks," said Howard Archer at Global Insight. "Indeed, it very much boosts the case for the next move in interest rates to be down," he added.
Euro weakens as a French government report today showed consumer confidence fell to a record 21-years low in July (-48).