Pound breaks $1.69
Sterling has exceeded the $1.69 level, up 0.4% on the day, after the UK revealed stronger-than-expected retail sales figures.
In April retail sales rose by 1.3%, analysts were expecting an increase of 0.4%, which is a 6.9% increase on an annualised basis.
The Bank of England revealed the voting break down over interest rates and the bond-buying scheme. The vote for both remained nine to zero but reports are stating the rate decision voting is ‘more balanced’. Traders are viewing this as a sign that some members of the Monetary Policy Committee are moving towards a more hawkish outlook, even though some traders are speculating an interest rate rise may not be until early next year.
Now that the pound has pulled back the losses from last week we could move towards the $1.7 mark, while the $1.68 mark continues providing support.