Sterling rose 0.2% to about 1.3233 against the US dollar in European trading, extending a firmer tone seen earlier around 1.3220 after finding demand near 1.3200 in Asia. The move followed stronger UK retail readings: BRC Like-For-Like Retail Sales increased 1.0% year-on-year in September versus a 0.7% forecast and 0.5% previously, while Total Retail Sales growth edged up to 1.3% from 0.7%, still below the 12-month average of 1.5%. The pair also stabilised after Monday’s rejection from the 100-period simple moving average on the four-hour chart, remaining within a range that has held for roughly three weeks.
Bank Of England Policy And Speechtracker Impact
Support also came from a Bank of England policymaker’s call for a more proactive response to inflation risks linked to energy supply shocks feeding into wages and broader consumer prices. The remarks were accompanied by an 8.2/10 FXS Speechtracker score, above the 7.7/10 historic baseline, while the US dollar eased on profit-taking after reaching an 18-month peak on Monday. Risks to sterling included the potential for a US dollar rebound via safe-haven demand following a deadly attack on Riyadh airport in Saudi Arabia.
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