Pound Rallies on Upbeat UK Retail Sales Report and Positive Sentiment

The Sterling pound rallied against the dollar boosted by the upbeat UK retail sales report released earlier today as investor appetite for the pound remained high. The GBP/USD currency pair’s gains were limited by worries that the EU could halt vaccine shipments to the UK, slowing down its vaccination programme and retaliatory Chinese sanctions.
The GBP/USD currency pair rallied from a low of 1.3741 in the early London session to a high of 1.3799 in the American market and was trading near these highs at the time of writing.
The currency pair’s initial rally was fueled by the positive investor sentiment, which pushed the pound higher for the second consecutive day. The release of the upbeat UK retail sales report for February drove the pair higher. According to the Office for National Statistics, headline UK retail sales grew 2.1% in line with expectations, while the core print was better than expected. The release of the Bank of England’s Financial Policy Committee meeting minutes had a muted impact on the pair. The BoE’s Michael Saunders‘ comments drove the pair higher after saying that the bank does not target the pound.
The cable kept rising after the downbeat US personal consumption expenditure report for February released by the Bureau of Economic Analysis. The upbeat University of Michigan US consumer sentiment report also had a muted impact on the pair.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events and US dollar dynamics.
The GBP/USD currency pair was trading at 1.3801 at 15:38 GMT, having rallied from a low of 1.3741. The GBP/JPY currency pair was trading at 151.36 after rising from a low of 150.04.
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Original from: www.earnforex.com