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Retail Sales Above Forecast

Sterling gained nearly half a percent against a weakened dollar today, as traders prepared for British retail sales data and the Bank of England’s interest rate decision.

Analysts put most of the pound’s buoyancy down to dollar weakness, with the U.S. currency struggling after the Federal Reserve struck a more dovish tone on monetary policy than in previous months.

The Fed have said they will definitely do 2 rate rises next year instead of the 3 they had planned.

Worries about Prime Minister Theresa May’s ability to win parliamentary approval for her Brexit deal in January continue to weigh on the pound and will almost certainly keep the Bank of England from changing its monetary stance.

The BoE rate decision is due at 1200 GMT.

According to a poll of analysts, retail sales was expected to have grown 0.3 percent month-on-month in November. However official figures show a growth of 1.2%. Also, growth of 3.8% year on year.

This strong data had no positive impact on the pound. Brexit is overshadowing any economic news.

 

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