Sterling found a boost for the second day after reports showed that British retail sales accelerated in July and the Public Sector Borrowing Requirement figure came in lower than expected.
UK retail sales figures in July came in at 1.1%, considerably higher than the expected number of 0.4%. Likewise, the government’s borrowing requirement came in at £3.2 billion, £2 billion lower than expected. Other data out today showed an increase in the number of unemployment claims in the US.
The pounds response to the positive data was instant, jumping almost a cent against both the euro and the dollar. The UK currency is hovering near its high of the day against the dollar, but has dropped back to sit in the mid 1.2150s against the euro following the latter’s rally against the greenback.
