Source: ForexYard
The British pound saw gains against several of its main currency rivals during morning trading, after the UK Retail Sales figure came in above its expected level. Retail sale increased by 0.3% last month, significantly higher than the 0% analysts had been predicting. Immediately following the release of the news, the GBP/USD shot up close to 70 pips, while the EUR/GBP fell 30 pips.
Going into the rest of the day, traders will want to pay particular attention to the US Philly Fed Manufacturing Index. Analysts are predicting that if the news comes in above the forecasted -4.7, expectations that the Fed will initiate a new round of quantitative easing may ease and the dollar could stage a recovery against sterling.
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