Wednesday, with data that shows the unexpected surged of British retail sales in August that boosted hopes and expectations for investors and traders that BoE or the Bank of England will soon lift interest rates from record lows before 2017 ends, the British pound sterling edged up against the United States dollar.
Analysts forecasted and expected the retail sales to have an increase of 0.2%, however, the British monthly sales growth hastened up to approximately 1.0%, which is considered its fastest since April. Thus, this gives the British pound the will to rise against the greenback on the day, jumping at nearly a cent against the dollar at $1.3586 GBP=D3, higher by 0.6% but still half a cent away from the currency’s fifteen-month high which was experienced on Monday.
In accordance to this, the British pound was obviously trading a little bit more robust against the greenback than the euro, which was 0.4% higher on the day and traded at 88.37 pence a euro EURGBP=D3.
In addition, the British pound was seen accelerating by nearly 4% on a trade-weighted basis last week, right after the Bank of England claimed that there is a possibility for the BoE to raise interest rates in the coming months—that is if the economy and the inflation pressures toughen as estimated. However, Jordan Rochester, Nomura currency analyst claimed in a note to clients that politics continues to cloud the UK outlook, which leaves some macro-investors to claim and declare that the British pound sterling is untradeable.