Sterling was lower across the board after UK Retail Sales fell below expectations on Thursday.

Retail Sales fell by 0.8% m/m in September, heavily beating forecast for 0.1% fall and against downward-revised numbers from August (0.9% from 1.0%).

Annualized figure strongly undershot forecast at 2.1%, falling to 1.2% in September vs previous month’s release at 2.3% (revised lower from 2.4%).

Downbeat Retail Sales could undermine BoE’s attempts to raise interest rates for the first time in a decade, as the central bank signaled an action in coming months and markets eyeing BoE MPC’s policy meeting on Nov 2.

Cable fell back to strong support at 1.3140, with possibility of break lower which would trigger further easing towards 1.3100 and risk extension towards key 1.3026 support in extension.

Pound fell around 140 pips against Japanese yen in immediate reaction on downbeat UK data, pressuring strong support and higher base at 147.80 zone, loss of which would have further negative impact on pound.

The EURGBP surged 0.8974, the highest in one week, after data and showing scope for further advance as twisting daily cloud continues to attract.