Retail sales boost the pound

The pound has risen to a 16 month high against the US Dollar this morning spiking at 1.6540 at present. At present sterling exchange rates are up against all other majors.

The rally for the pound seems to be down to the better than expected retail sales. They came out +0.2% when the market was expecting a decline of          -0.5% for the Month.

It has led to questions resurfacing about when will the Bank of England raise interest rates.

It seems at present that everyday throws up another scenario as to why the BoE should and then should not raise interest rates. Today’s figures have put more pressure for a rate hike when we were thinking that it could be as far away as Q3 or Q4.

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