Saturday 1 October 2016

Sterling hits strongest level in a month as UK sales rise

Eshe Nelson

Published 23/10/2015 | 02:30

Bank of England Governor Mark Carney. Photo: Mark Carney
Bank of England Governor Mark Carney. Photo: Mark Carney

The pound rose to its strongest level in a month against the euro as a report showed UK retail sales increased at a faster pace than economists forecast last month.

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The report strengthens the case that the economy would withstand the Bank of England raising interest rates sooner than is signalled by market pricing. Sterling extended its gain after European Central Bank President Mario Draghi said policy makers in December will re-examine the degree of economic stimulus they are providing.

The pound advanced against most major counterparts. Sales, including auto fuel, rose 1.9pc from August, the biggest increase since December 2013, the Office for National Statistics said in London yesterday. That was more than the 0.4pc gain economists had forecast in a Bloomberg survey. BOE Governor Mark Carney, inset, has said that the timing of a move in interest rates will become clearer at the turn of the year. Markets aren't pricing in the first increase until 2017. The pound gained 1.4pc to 72.52 pence per euro as of 1:52pm yesterday. Sterling was little changed at $1.5419. (Bloomberg)

Irish Independent

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