Ella 
The GBP/USD got a much-needed boost on Monday as market sentiment improved.
The Pound remains well off last week’s highs after a fresh round of risk flows into the Dollar.
On Tuesday, UK wages and US retail sales will be released.
GBP/USD rose back to 1.2215 on Monday as risk appetite picked up ahead of Tuesday’s UK wage and US retail sales data.
Tuesday’s UK three-month average annual earnings growth excluding bonuses is expected to hold steady at 7.8%, while the UK three-month average annual earnings growth including bonuses is expected to fall from 8.5% to 8.3%.
U.S. retail sales, due later on Tuesday, are expected to fall from 0.6% to 0.3%, but if U.S. retail sales show solid growth, the market may revive concerns about the prospect of future interest rate hikes by the Federal Reserve. Inflation remains a sticking point for the U.S. economy, and while inflation growth has slowed somewhat, the rate of decline is still much lower than investors had anticipated.
As the U.S. economy continues to grow at a slower pace than market expectations, this will cause the Federal Reserve to delay interest rate cuts even further than previously anticipated.
