Although better-than-forecast German business confidence data saw the Pound edge lower against the Euro, the British currency firmed against the US Dollar after UK CBI reported sales figures were released.
Yesterday’s UK CBI trends data may have fallen short of forecasts, but today’s Confederation of British Industry reported sales index jumped from 13 in March to 30 in April – its highest level since February.
Economists had expected the figure to advance to 17.
The survey covers 131 retail businesses from sectors like DIY and food and drink.
According to the CBI data, retail sales have climbed year-on-year for a fifth month, with internet retail sales rallying by 63 per cent – the most rapid increase since November 2012.
CBI executive Barry Williams said of the result; ‘It’s a welcome rebound from March, largely down to the later timing of Mother’s Day and Easter. This latest survey echoes the current drumbeat of positive economic news. The trick now is for this to become a consistent theme, and deliver much needed support to household spending and economic growth in the months ahead.’
The CBI sales expectations index also advanced to an over 3 and a half year high of 43.
After the report was released the Pound was little-changed against a boosted Euro.
Sterling managed to continue trading close to 1.68 against the US Dollar as European trading progressed.
However, with US durable goods orders figures and initial jobless claims data still to be published, additional GBP to USD movement can be expected.
Economists expect US durable goods orders to have increased by 2 per cent in March following a 2.2 per cent gain in April.
Before the weekend UK retail sales may well provoke Pound volatility.
A 0.4 per cent month-on-month sales decline has been forecast, so a surprising result could have a big impact.
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.6781,
Pound Sterling,,Euro,1.2136,
Pound Sterling,,Australian Dollar,1.8102,
Pound Sterling,,New Zealand Dollar,1.9539,
US Dollar,,Pound Sterling,0.5955,
Euro,,Pound Sterling,0.8240,
Australian Dollar,,Pound Sterling,0.5524,
New Zealand Dollar,,Pound Sterling,0.5107,
[/table]
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