GBPUSD Rises as Royal Wedding Festivities Lifts Retail Sales

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GBP Analysis and Discussing Factors

Watch our Q2 GBP prediction to find out What Is Going to drive the money through next quarter.

Royal Wedding Fever Lifts Consumer Paying

Yet another sizeable dip in UK retail revenue for May, which saw all of metrics published ahead of expectations, but subsequently, this took GBP too session drops against its counterparts. The headline reading soared 1.3% (Exp. 0.5%), whilst there was likewise an boost in the heart examining of 1.3% (Exp. 0.3%). The ONS stated that the bounce in retail earnings was due to good weather, as well as the imperial marriage parties resulting in a raise on household and food products.

The a lot much better than anticipated figures have served GBPUSD preserve a company foundation over the 1.34 deal, at a week at which GBP was mired by Brexit doubts and soft productivity statistics at the beginning of the week. A continuing rally in customer spending may help to keep an interest rate hike in August living, however, the condition of the retail industry does continue to be brittle, whereas true earnings continues to remain subdued and somewhat lower (now 0.4%), which might suggest that an interest rate hike in August may be too soon, with November maybe a viable option. This was revealed in currency markets with prices to get an August rate hike at 40%.

GBPUSD Rises as Royal Wedding Celebrations Lifts Retail Sales

Resource: Thomson Reuters (Bank of England Price Hike Expectations)

GBPUSD CHART: 1-HOUR TIME FRAME (June 1st — 14th)

GBPUSD Rises as Royal Wedding Celebrations Lifts Retail Sales

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— Written by Justin McQueen, Industry Place Analyst

To contact Justin, email him Justin.mcqueen@ig.com

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