UK retail sales data exceeded forecasts, providing modest support to the pound despite the dollar’s rebound. Retail volumes rose by 0.4% in March, contrary to the predicted decline, sparking a momentary lift for sterling.
Nonetheless, the dollar remained robust against most major currencies, buoyed by easing trade tensions. Sterling increased by 3.25% against the dollar in April, bolstered by economic optimism.
The Bank of England’s officials, facing tariff concerns, balanced their outlook. Governor Andrew Bailey focused on growth challenges, while Megan Greene anticipated inflation impacts, nudging markets to forecast rate cuts.
(With inputs from agencies.)
