UK Retail Sales Jump by 2.9% in May, Reducing Possibility of BoE Rate Cut in August

Welcome to the Extreme Investor Network blog, where we provide expert insights into the stock market, trading, and all things Wall Street. In today’s update, we take a look at the recent Bank of England interest rate decision and its impact on the GBP/USD currency pair.

On Thursday, June 20, the Bank of England announced that it would be keeping interest rates steady at 5.25%. Governor Andrew Bailey highlighted the return of inflation to the 2% target but emphasized the need to ensure that inflation remains low, hence the decision to maintain the current interest rates for the time being.

Our FX Empire author and senior editorial team member, James Hyerczyk, interpreted the Bank of England’s decision as a finely balanced one for some MPC members. With wage growth moderating and services inflation still high since May, the timing of a rate cut could be delayed to November, depending on upcoming inflation and labor market data.

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In response to the UK retail sales data, the GBP/USD currency pair experienced some volatility. Prior to the release of the data, the pair dropped to a low of $1.26506 before climbing to a high of $1.26654. Following the retail sales report, the GBP/USD fell to $1.26613 before reaching a high of $1.26738.

As of Friday, June 21, the GBP/USD was trading up 0.09% at $1.26686. The upcoming rounds of data releases and events will continue to shape sentiment towards a potential rate cut by the Bank of England, making it crucial for traders to stay informed and vigilant.

Stay tuned to Extreme Investor Network for more expert analysis and unique insights into the world of trading and the stock market. Make sure to bookmark our page for the latest updates and valuable information to help you make informed investment decisions.

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