Weak UK retail data dragged down the pound.

Due to the weaker-than-expected UK retail sales data for October, the pound fell against the euro and gave back its gains against the US dollar. The data showed that UK retail sales fell by 1.1% in October, much lower than the -0.1% expected by economists in Reuters and The Wall Street Journal surveys. Wealth Club investment manager Nicholas Hyett pointed out in his report that consumers significantly cut back their spending in October, influenced both by the weak expectations for next week's budget announcement and by the early release of demand due to "Black Friday" promotions. He warned that if consumer spending continues to falter, the Bank of England may have to stimulate the economy with a rate cut.