Pound Gains on Dollar & Euro After Retail Sales Data

The Great Britain pound rose against the US dollar and the euro today thanks to improving retail sales, though analysts were not entirely optimistic.

The Confederation of British Industry released a retail sales survey that showed a reading of +9% for February, up from -8% in January. Furthermore, the reading was above the analysts’ median estimate of +5%. Yet not the entire report was positive as Ben Jones, principal economist at the CBI, voiced concern about the impact of rising inflation on consumer demand, saying:

The rebound in retail sales suggests that some of the recent gloom about a slump in consumer demand at the start of 2017 may be overdone. However, retailers remain cautious about their prospects, expecting fairly tepid growth in sales volumes next month against a backdrop of rising inflation that is likely to erode households’ purchasing power through the course of the year.

GBP/USD edged up from 1.2443 to 1.2491 as of 13:28 GMT today. EUR/GBP dropped from 0.8480 to 0.8461.

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