The Pound Sterling edged higher against the US Dollar after a surprising bit of upbeat data helped to lift it from the doldrums. The Office of National Statistics reported that April's retail sales surged to 1..6%, well above the 0.9% that had been predicted. Economists point to improving weather as the catalyst for the surge, which was led by increases in sales of clothing, household goods and fuel. While the news is positive in the short-term, analysts caution that there's still uncertainty in the longer term as the 3-month data shows a gain of only 1.3% for the period from a year ago, while last year's figure showed a 2.9% rise.
As reported at 11:04 am (BST) in London, the GBP/USD was trading at $1.3395, a gain of 0.29% and off the session peak of $1.3422; the pair earlier hit a trough of $1.3350. The EUR/GBP is trading at 0.87552 Pence, down 0.09640%; the pair has ranged from a session low of 0.87482 Pence to a peak of 0.87776 Pence.
Euro Boosted by China Comments
In the Eurozone, the common currency moved away from a 6-month trough after the Chinese government touted the strong relationship between China and the Eurozone. Li Keqiang, the Chinese Premier, said that they hoped the Euro would continue to strengthen and remain steady despite the occasional issues related to sovereign debt within the Euro area. The EUR/USD was trading at $1.1725, up 0.18% and off the pair's session peak of $1.17460.