Pound advances to 5-month high vs dollar on U.K. retail data

NEW YORK (Forex News Now) – Sterling advanced to a 5-month high against the dollar on Tuesday, after industry data showed that U.K. retail sales jumped far higher than forecast in July.

In U.S. afternoon currency trading, GBP/USD hit 1.5576, cable’s since Feb. 18. The currency pair later retreated slightly to trade at 1.5564, up 0.47 percent on the day.

The Confederation of British Industry said earlier that its Distributive Trades Survey’s headline retail sales balance shot up to 33 from -5 in June, the highest level since April 2007.

Analysts had expected July’s figure to come in at 2, two global forex news outlets reported.

According to forex analysis, GBP/USD was likely to touch support around Monday’s low, 1.5409, and encounter immediate resistance around the high of Feb 17, 1.5816.

The greenback’s losses also came after data from a business research firm showed earlier that U.S. consumer confidence deteriorated more than expected in July.

Meanwhile, the pound surged versus the yen: GBP/JPY traded at 136.74, up a huge 1.6 percent.