With the Bank of England policy meeting looming largely, the Pound Sterling moved higher against the US Dollar on retail sales data. Analysts point out that the greenback was broadly weakened after the latest Federal Reserve policy announcement. which saw a more dovish outlook than FX traders had expected. The latest retail sales data out of the UK has also helped to prop up the Pound. The Office of National Statistics reported that retail sales in November grew to 1.4% month-over-month, well above the 0.3% predicted. Excluding fuel, retail sales jumped to 3.8%, beating expectations of 2.3%, while the previous figures were revised upward to 2.8%.
At 11:09 am, the GBP/USD pair was trading $1.2702, up 0.6554%; the pair is moving just a few pips off the session peak of $1.2707. The EUR/GBP is trading at 0.9038 Pence, up 0.25%; the pair has ranged from 0.90508 Pence to 0.90083 Pence.
BoE Outlook Likely Unchanged
Analysts generally believe that the BoE will maintain its current stance and outlook, especially given the worries over the Brexit. The BoE interest rate looks to be kept at the existing 0.75% while asset purchases will remain unchanged. Though markets have largely priced in just such an eventuality, analysts express caution of a knee jerk reaction which could drop the Pound lower once again.