- U.K. retail sales post biggest quarterly drop since early 2010
- 2015 manifesto constrains ability to manage economy: Hammond
The pound declined versus all but one of its Group-of-10 peers on weaker-than-forecast U.K. retail sales data and after Chancellor of the Exchequer Philip Hammond said the government needs to “restate” its fiscal mandate in the next parliament.
Sterling pared its biggest weekly advance this year against the dollar after data showed retail sales recorded their largest drop in seven years in the first quarter. The U.K. currency extended its decline after Hammond said in Washington that the 2015 Conservative Party manifesto limited its ability to manage the economy.
“If you say something like that without giving detail, the knee-jerk reaction is to assume the worst and sell quickly, then buy back later if you’re wrong,” Stuart Bennett, head of G-10 currency strategy at Banco Santander SA in London, said, referring to Hammond’s comments. “The move following the announcement of the election doesn’t really make…