The Pound was already trading strongly against its US counterpart as yesterday’s encouraging employment figures lent the British asset support and investors digested the debt ceiling deal hashed out in Congress during North American trading.
The Pound Sterling to US Dollar Exchange Rate was in the region of 1.6091 as of 10:35 GMT.
As the European session progressed, Sterling edged away from close to a one month-low against its US peer and consolidated gains against the Euro.
Then, following the publication of data showing a considerably better-than-forecast surge in UK retail sales, the Pound to leapt by the most for four-weeks.
While economists had anticipated a month-on-month advance of 0.3 per cent in September, sales actually surged by 0.7 per cent last month, Augusts’ decline was also positively revised to 0.8 per cent.
Year-on-year sales jumped by 2.8 per cent rather than the 2.2 per cent expected.
Sterling advanced on all of its most traded peers in the aftermath of the data release and continued to enjoy a bullish relationship with the ‘Greenback’ – rallying by 0.7 per cent.
Sales including fuel were up 0.6 per cent from August.
1 US Dollar is currently worth 0.6224 pence
A 1.2 per cent increases in clothing and shoe sales was largely responsible for the better-than-forecast result, but was slightly offset by a 0.2 per cent drop in food sales.
In spite of the unexpectedly optimistic result and yesterday’s larger-than-predicted decrease in UK jobless applications, this less than enthusiastic response was offered by economist Blerina Urici; ‘Although the intensity of the squeeze from inflation has eased somewhat in recent months, nominal wage growth has deteriorated leading to an acceleration in real earnings falls. Given the weakness in the labour market, with the unemployment rate still high and productivity low, prospects for earnings growth remain subdued in our view.’
According to the Office for National Statistics, total sales were up 1.5 per cent in the third quarter from the second.
With no significant economic data for either the UK or Eurozone due for release tomorrow, movement in the GBP/EUR pairing is likely to be restricted ahead of the weekend.
However, with several US officials scheduled to deliver statements regarding the political impasse resolution, further GBP/USD fluctuations can be expected.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6091 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1807 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6769 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8989 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6224 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8471 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5961 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5263 >
(As of 10:35 GMT)
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