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UK’s retail sector anecdotal reports cite further administration and restructuring yet the rise in May retail sales and this week’s service sector PMI suggest that the sector may be stabilising, according to Tim Riddell, Research Analyst at Westpac.

Key Quotes

“Similarly, housing surveys also show some tentative stabilising. There is also potential for some World Cup effect on domestic activity. If May’s Cabinet meetings prove successful, these factors could allow GBP some respite. However, both the retail and housing sectors face considerable headwinds and so any GBP/USD rebounds are likely to struggle in front of 1.3500 as a potential 1.28-1.37 range develops.”