Cable touches seven-month peak after strong U.K. data

Cable touches seven-month peak after strong U.K. data

18 June 2015, 11:57
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On Thursday the pound sterling reached seven-month peak against the greenback when data showed that U.K. retail sales rose last month. The dollar was weaker after the FOMC statement.

GBP/USD touched highs of 1.5928, the most since November 2014, before settling at 1.5909 - up 0.48%.

The euro was slightly weaker against sterling, with EUR/GBP last at 0.7162.

Retail sales climbed 0.2% in May, in line with forecasts.

The Office for National Statistics said clothing sales were 1.6% down on April's level, the biggest fall since September 2014. A drop in internet clothing sales was also included.

Analysts had expected retail sales to be flat in May after sales in April were boosted by unusually warm weather with May being cooler than normal.

Food stores had a good month, with volumes up 0.6%, the biggest increase since December. Household goods stores and petrol stations also saw growth.

A number of economists have expected that UK consumer spending could be on track for a strong year as low inflation and rising wages give households more disposable income, BBC says.

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