The Pound has strengthened against the Euro after UK retail sales smashed economist expectations boosting hopes that the UK economy is on the right track to recovery.
The Pound Sterling/Euro Exchange Rate is currently in the region of 1.1712
According to the Office for National Statistics retail sales in the UK jumped above forecasts as consumers spent more cash.
Sales of food grew by 3.5 percent from April, the strongest pace in two years, as supermarkets offered promotions to lure cash-strapped shoppers.
Non-store retailing, including online, grew by 4.3 percent and overall retail sales also bounced back from a poor showing in April, when unseasonably cool weather dented demand
The data adds to signs that the UK economic recovery is beginning to take a firmer grip. Consumers remain under pressure however as inflation continues to outpace pay rises and as government austerity measures begin to take effect.
“A recovery in the U.K. economy may be taking root,” Martin Beck, an economist at Capital Economics Ltd. in London, said in a note. “Retail sales may provide a modest boost to growth in the second quarter.”
Yesterdays Bank of England minutes continued to highlight the fragility of the nation’s economy as outgoing Governor Mervyn King called for more monetary stimulus citing that there was a powerful case to keep Quantitative easing measures.
Against the US Dollar the Pound fell hard on Wednesday evening after the US Central Bank announced that it would be curbing its monetary easing programme if the US economy continues to show signs of improvement. The GBP/USD currency pair is expected to remain under pressure as the markets continue to take into account the Fed’s comments.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5451
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6834 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9920>
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8562>
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5950 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5048 <
(As of 11:00 am GMT)
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