Investing.com – The british pound rose Thursday after the retail sales uk may have been higher than expected, strengthening the confidence in the economy.
Retail sales in the Uk rose 1.6% in April, against a rise of 0.1%, according to the Office for National Statistics. The unexpected surge shows consumer confidence in the uk economy, despite the political uncertainties surrounding the Brexit.
The pair GBP / USD climbed 0.46% to achieve a higher daily 1,3410 to 04h43 (8h43 GMT).
The euro was also higher, but has been selected by economic and political worries in Europe. The PMI index made up of the euro area has fallen to its lowest level in 18 months in may, indicating a stagnation of the economic growth. Investors are also concerned about the policy in Italy, where the anti-establishment 5-Star far-right could put the officials eurosceptics in power. The EUR / USD rose 0.42% to 1,1744.
During this time, the greenback declined after a dovish tone that is unexpected in the last minutes of the meeting of the federal reserve.
The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was down 0.30% 93,63.
The minutes of Fed meeting suggested that if a further rise in interest rates was justified, the central bank agree that inflation exceeds its target rate for some time.
It was a surprise to investors, who expected that the Fed increases interest rates and tightens monetary policy in the months to come. The Fed has raised its rates in march and is expected to increase its rates two more times, with a probability of increase in June of 95%.
The dollar is declining against the yen and refuge, the USD / JPY dropping 0.35% to 109.69. Elsewhere, the australian dollar is advancing, with the AUD/USD up 0.05% to 0,7564 while the NZD / USD rose 0.01% to 0,6916