The Pound Sterling was higher in the hours ahead of the Bank of England's monetary policy decision as FX traders waited to see whether it would maintain its stance on tightening. With more and more of the major central banks now taking a more cautionary position as regards global growth, including the US Federal Reserve Bank and the Bank of Japan, analysts believe that the BoE will tamp down previous rhetoric about rate hikes and follow along with the rest of the pack. The latest survey suggests that the UK central bank will maintain rates at their current levels, likewise they will keep the asset purchase facility at £435 billion, but it will be the bank's official statement, and later, Mark Carney's speech, which will sway market sentiment.
As reported at 11:30 am (GMT) in London, the GBP/USD was trading at $1.2708, up 0.5032% and straying from the recorded peak of $1.2726 while the low was at $1.2642. The EUR/GBP was trading at 0.8888 Pence, a gain of 0.09%; the pair has ranged from a trough of 0.88730 Pence to 0.88950 Pence in today's session.
Retail Data Disappoints
Earlier today, the National Statistics Office of the UK reported that British retail sales declined last month 0.5% on a month-over-month basis, generally as economists had predicted. That data will have to be included when the MPC considers the impact that the US-China trade war is having on global growth, as it points to a second quarter that is likely to be weaker than anticipated. Data is not having the same impact on the Pound as it normally would, however, given the breadth of concerns about the October 31st Brexit deadline and the uncertainty over the next Prime Minister.