© Reuters. The book touches on a top daily after retail sales
Investing.com – The pound sterling reached its highest level on Thursday, after statistics showed that retail sales in the Uk have exceeded the forecasts in the month of may due to the good weather and the Royal Wedding boosted consumer spending.
The GBP / USD was up 0.49% to 1.3442 at 05:03 AM (09:03 AM GMT), at 1.3396 before the report.
Retail sales in the Uk jumped more than expected in may to 1.3%, according to the Office for National Statistics, while the figure for the previous month shows an increase of 1.8%.
The buyers have spent more on food and household items in anticipation of the wedding of prince Harry and Meghan Markle, and thanks to the beautiful weather in the middle of the month, said the ONS.
The report indicates that the economy is recovering from a marked slowdown observed due to unfavourable weather conditions at the beginning of the year.
The pound’s gains can be explained by the fact that the u.s. dollar is weakened at all levels, abandoning the gains made in the previous session after the federal Reserve raised interest rates for the second time this year and indicated that it plans to present two more rate increases before the end of the years.
The Fed has trained the market of the american use of “strong” and said that economic activity had expanded at a “comfortable rate”.
The dollar index, which measures the strength of the dollar against a basket of six major currencies, was down 0.29% to 93,29.
Investors remained cautious as the authority Trump is preparing to unveil customs duty of $ 50 billion on chinese products – a decision that will be the subject of retaliatory measures according to the warning of Beijing.
The pound sterling was also up against the euro, with EUR / GBP slipping 0.25% to 0,8794 as investors await the conclusion of the monetary policy meeting later in the day.
Market participants await details on the ECB plans for the liquidation of its enormous stimulus program of bond-buying. The central bank will also publish its latest projections for growth and inflation.