It’s been a choppy couple of days for the UK pound. Thanks to data releases and speculation, things are a little unsettled. Sterling is mostly lower today, thanks to the latest retail sales information.
UK pound was higher yesterday, in spite of disappointing retail sales data, thanks to the latest indications from the United States Federal Reserve. With the Fed signaling gradual interest rate increases, the sterling got a boost.
However, today Forex traders are digesting the implications of the UK retail sales data. The Office for National Statistics reported a 0.6 per cent decline from September to October. The predictions were for a decline of 0.5 per cent. As a result of the unexpectedly higher decline, many expect that the Bank of England will put off its interest rate hikes.
This puts the sterling at a disadvantage against the dollar, as many had expected to see interest rate hikes near each other. However, the UK economy is still moving forward, and the sterling is still gaining against the euro, which continues to struggle a great deal.
At 14:41 GMT GBP/USD is down to 1.5250 from the open at 1.5289. EUR/GBP is also lower, dropping to 0.7017 from the open at 0.7020. GBP/JPY is down as well, falling to 187.1880 from the open at 187.8290.
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