British Pound (GBP) Exchange Rate: Sterling Climbs Above One-Week High Against US Dollar
The Pound climbed to a one-week high against the US Dollar on Tuesday after the currency found support from the release of data which showed that UK retail sales growth picked up speed in the first month of the year.
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According to the British Retail Consortium, retail sales increased by 3.9% from the previous year, adding to the 0.4% increase recorded in December. Economists had been forecasting a rise o just 0.8%.
Sterling made gains against the majority of its most traded peers following the data’s publication as speculation increased that the recent run of positive data will spur the Bank of England to raise interest rates sooner than expected.
The Bank is widely expected to announce adjustments to its forward guidance policy after unemployment fell to 7.1% earlier in the year. The decline was far quicker than the Central bank had been expecting.
Tomorrow sees the BoE releases its latest forecasts for the UK economy as well as its latest consumer price report in its quarterly inflation report.
Some economists are expecting the Pound to climb further after the data is released.
“If anything, the economic backdrop in the UK has improved. I’m still upbeat and looking for the Pound to go higher,” said the head of European hedge-fund sales at Mizuho Bank.