GBP Rises Amid UK Retail Sales Slowdown Despite Missing Forecasts

According to data from the UK Office for National Statistics (ONS), retail sales in the UK decelerated sharply in July, coming in at 1.6% year-over-year, down from 3.8% in June.

This missed analysts' forecasts of 2.2% and represents a decline on a monthly basis as well, with a fall of 0.5%.

The slowdown was driven by weaker sales of clothing and household goods, which fell 1.3%.

However, despite the disappointing retail sales numbers, the British pound (GBP) appreciated against the US dollar, rising to $1.3644 as concerns over US sovereign debt weighed on the greenback.