The British pound had made a comeback today on the back of solid local data, brushing off yesterday’s terrorist attack, which sent the UK into panic mode.
At 4.38pm (GMT) the British currency was trading at $1.2516 against it’s US counterpart up from $1.2484 in yesterday’s trading.
Retail sales figures form the UK released earlier today hit the market at 3.7 percent on a yearly basis, while the monthly figure rose 1.4 percent in February according to the Office for National Statistics, and was well above analysts expectations which immediately boosted the pound above the $1.25 mark.
It’s seems now that British consumers have put the fears of Brexit behind them and are adjusting to the aftershocks that it has caused,
"A comeback for UK Retail Sales in February challenges the notion that UK consumers are delaying activity due to the overhang of Brexit uncertainty," Saxo Bank's head of FX strategy John Hardy said
The figures have given more ammunition to the Bank of England to raise interest rates in the coming months and follows on from strong CPI figures released earlier in the week.
“This will likely strengthen the ongoing market speculation about BOE policy normalization before long given the hawkish dissent we had at the MPC meeting last week and the above-target inflation for February released on Tuesday,” said Valentin Marinov, head of G-10 FX research at Credit Agricole.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|