GBP Falls vs. EUR with Consumer Confidence & Retail Sales

The Great Britain pound fell today against the euro and fluctuated versus the dollar as the signs that the economy of the UK is weakening made the sterling less attractive to Forex traders.

Nationwide Building Society reported consumer confidence fell from 51 to 49 in July and said:

Any substantial improvement in confidence is unlikely during the remainder of 2011.

The Confederation of British Industry Distributive Trades Survey showed the balance of retail at -14 percent in August, much lower than July balance of -5 percent. The report said:

Retail sales volumes fell on a year ago in August at the fastest pace for over a year.

The pound also fell as gains of European stock reduced demand for the currency as a haven against the crisis in Europe.

EUR/GBP climbed from 0.8802 to 0.8825 today as of 10:42 GMT, while 0.8835 was the highest level during this trading session. GBP/USD traded near its opening level of 1.6372 after falling to the low of 1.6344.