The British Pound declined against the spectrum of major currencies in overnight trade after a disappointing set of house price and retail sales figures as well as rumors that Moody’s may downgrade the bonds of several UK banks.

Key Overnight Developments

• UK House Prices, Retail Sales Disappoint in February
• Australian Business Confidence Surges to 7-Year High
• WSJ Article: Moody’s May Downgrade UK Bank Debt


Critical Levels...

U.S advance retail sales in December unexpectedly fell by 0.3% against forecasts for a 0.5% gain, as the weak labor market caused Americans to curb holiday shopping. Indeed, purchases of electronics dropped by 2.6% after a 2.8% gain in November as shoppers took advantage of black Friday deals and sought out popular items as reduced inventories were expected to limit availability.

Read more: DailyFX - U.S. Retail Sales Unexpectedly Dropped In December As Consumers Retrenched http://www.dailyfx.com/forex/market_...#ixzz0cbAmZZ5v

Retail spending in the U.S. increased 1.2% in November to top expectations for a 0.6% rise, while the previous month’s reading was scaled back to reflect an expansion of 1.1% from an initial forecasts for a 1.4% rise. Moreover, sales less autos increased 1.2% after holding flat in October, while retail demands excluding autos and gas expanded 0.6% amid projections for a 0.2% rise.

Read more: DailyFX - U.S. Retail Sales Tops Forecast, Import Prices Jump on Higher Oil Prices http://www.dailyfx.com/forex/market_...#ixzz0ZPBdAmI8