UK retail sales came in much stronger than expected with a rise of 3.5 percent for the month of May. Retail sales in the UK are up 8.1 percent over the past 12 months. This is the highest surge since they started keeping records of retail sales in 1986!
The Pound surged across the board as the surprise numbers gave shorts the fear that the UK economy may recover without further interest rate cuts. Some economist claim that the numbers are a fluke among falling housing prices reports of increasing consumer pessimism.
Despite economist doubts, the pound rallied on the news as speculators cut their shorts and aniticpated the Bank of England to continue to keep the rates steady at 5.00 percent. The pound continues to trade in it’s recent range against the majors.
The Pound surged across the board as the surprise numbers gave shorts the fear that the UK economy may recover without further interest rate cuts. Some economist claim that the numbers are a fluke among falling housing prices reports of increasing consumer pessimism.
Despite economist doubts, the pound rallied on the news as speculators cut their shorts and aniticpated the Bank of England to continue to keep the rates steady at 5.00 percent. The pound continues to trade in it’s recent range against the majors.
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