The Pound Sterling climbed to a 50day peak during London trading today after an unexpectedly upbeat retail sales figure was released. The Office of National Statistics in the UK reported that May's retail sales came in at 3.9% annualized, well above the 2.4% increase predicted in an economists' poll. Retail sales on a monthly basis were also better than expected at 1.3% but still down from the previous figure's 1.6% (which itself was revised down from 1.8%). For some market players, this latest news is the evidence needed to show that the UK economy is on the path to recovery after the sharp slowdown earlier this year.
As reported at 10:42 am (BST) in London, the GBP/USD was trading at $1.3436, up 0.47%, and not too far off the session peak of $1.3447; the session low was recorded at $1.3370. The EUR/GBP is trading at 0.88025 Pence, down 0.19306%; in today's trading session, the pair has ranged from a low of 0.87900 Pence to a peak of 0.88211 Pence.
Markets Turn to ECB
Later today, market's focus will be on the policy decision from the European Central Bank. Currently, economists are calling for the ECB to maintain rates at current levels. There is some thought that Mario Draghi, the head of the ECB, might call for an end to the stimulus program even as he is vague about the future of interest rates. Some analysts have pointed out that a very specific outline of future policy considerations have backfired for other central banks, namely the BoE and the Fed, so Draghi will want to contain expectations at this point.