Forex - Sterling near Day's Highs after UK Retail Data; BoE Ahead

© Reuters. Sterling near day’s highs after UK retail data; BoE ahead

Investing.com - The pound was near the day’s highs on Thursday after data showing that rose at a far faster pace than expected last month as investors awaited the outcome of the Bank of England’s monetary policy meeting later in the day.

was up 0.25% to 1.3452 by 03:40 AM ET (08:40 AM GMT) from around 1.3447 earlier.

Retail sales jumped in November, up from 0.5% in October and well ahead of economists' forecasts of a 0.4% rise, the Office for National Statistics reported.

Retail sales volumes were 1.6% higher than a year earlier, up from a flat reading in October.

Sales were boosted as shoppers took advantage of Black Friday bargains but the report also indicated that the underlying trend was weaker.

Sales in the three months to November grew by just 1.0% compared with a year earlier, the weakest since May 2013.

The report also pointed to rising inflation pressures, with average shop prices up 3.1% in November from a year earlier.

The fall in the pound since last year’s Brexit vote has fueled inflation by pushing up the cost of imported goods. With inflation outstripping wage growth pressure on household spending is likely to worsen which could dampen growth.

Investors were looking ahead to the BoE announcement later Thursday, with no change expected after a rate hike last month. Instead investors will be focusing on the meeting minutes for hints of further action in 2018 and the bank’s view on Brexit.

The Federal Reserve as expected at its meeting on Wednesday and left its interest rate projections for 2018 unchanged.

Meanwhile, sterling was higher against the euro, with down 0.31% at 0.8789.

In the euro zone, data on Thursday showed that the in at the end of 2017, with December seeing the fastest growth in business activity in almost seven years.

The European Central Bank was expected to keep rates on hold following its meeting later Thursday, with investors awaiting any fresh forward guidance from ECB chief Mario Draghi on the bank's bond buying program.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read Again Forex - Sterling near Day's Highs after UK Retail Data; BoE Ahead : http://ift.tt/2ChORCT

Let's block ads! (Why?)