Pound Sterling to US Dollar (GBP/USD) Exchange Rate close to 32-month high

The Pound climbed close to a 32-month high against the US Dollar on Thursday after data showed that US retail sales fell unexpectedly in January and the number of Americans claiming unemployment payments rose last week.

According to the Washington based Commerce Department, retail sales in the US fell by 0.4% last month, countering economist expectations for a stagnant figure.

The decline was the sharpest recorded in 10 months and was being blamed on the harsh weather that has created havoc across most of the USA over the past few months.

The data increased concerns that the US economic recovery is losing momentum. Recent poor jobs data and wage growth reports have done little to inspire confidence.

A separate report released by the Department of Labour showed that the number of people who claimed unemployment assistance last week jumped by 8,000 to 339,000. The previous week’s figure was 331,000. Economists had been expecting the number of claimants to fall by 1,000.

The Pound pushed higher as it continued to find support from yesterday’s announcement from the Bank of England that it had revised its growth forecasts for the UK economy higher.

Due to the Dollar’s weakness it fell to three-week lows against the Euro and Swiss Franc.

Against the Australian Dollar however the ‘Greenback’ was broadly higher after the Oceanic currency was sent tumbling following the release of data which showed that unemployment in Australia rose to a 10-year high of 6%.

The US Dollar could experience further volatility late in the session when Federal Reserve Chairman Janet Yellen addresses the Senate Banking Committee.