Pound Strives Higher as UK Retail Sales Expand

The  Great  Britain  pound  advanced  after  the  report  showed  that  the  retail  sales  in  Britain  unexpectedly  rose  last  month,  refueling  talks  about  possible  increase  of  the  interest  rates  by  the  central  bank.

The  UK  retail  sales  increased  by  0.2  percent  in  March  on  month-on-month  basis,  following  the  drop  by  0.9  percent  in  February.  This  report  surprised  analysts,  who  expected  a  decrease  by  0.5  percent.  The  public  net  borrowing  was  £18.6  billion,  in  line  with  forecasts.

Pound Gains as UK Consumer Confidence Improves

The  Great  Britain  pound  jumped  today  after  the  report  showed  the  improvement  of  the  UK  consumers’  confidence,  encouraging  analysts  to  talk  about  a  possible  increase  of  the  lending  rates  by  the  nation’s  central  bank.

The  Nationwide  report  about  Britain’s  consumer  confidence  showed  that  the  confidence  index  increased  from  39  in  February  to  44  in  March.  That’s  compared  to  the  median  forecast  of  40.  The  report  said  that  the  consumers’  “assessments  of  their  present  situation  remain  subdued”.

Britain’s Interest Rates May Go Up, Helping Pound Gain vs. Euro

The Great Britain pound rose today against the euro as the speculation that European banks would have problems in raising funds and the forecast that Britain’s central bank would increase the interest rates spurred demand for the sterling. The currency was little changed versus the US dollar.