Ella 
The British pound was supported by stronger-than-expected June retail sales data.
UK consumer spending remained resilient in June despite stubbornly high inflation.
Monthly retail sales rose 0.7% in June, compared with investors’ expectations for a modest 0.2% increase.
Sterling (GBP) is strengthening on the back of more resilient than expected UK retail sales data. The GBP/USD pair rebounded quickly on the back of strong growth in consumer spending in June. Retail sales rose 0.7% on month in June, beating expectations for a 0.2% increase. Annual consumer spending data contracted 1.0%, compared with consensus expectations for a contraction of 1.5%.
UK consumer spending remained resilient in June despite the Bank of England (BOE) raising inflation and interest rates. Upbeat retail demand offset optimism fueled by weak inflation data for June, as a boost in consumer spending could see companies raise prices on goods and services at factories again. In addition, recovering growth in consumer spending may boost hopes of a series of 50 basis point rate hikes by the Bank of England.
