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British retail sales rose by 1.4% in May. On a year-over-year basis, it is a 2.4% rise. Expectations stood on a rise of around 1% after the big fall last month. So, this a nice surprise.

GBP/USD traded around 1.5680 before the release and is now 1.5690 after touching 1.57. Update: Cable continues higher above 1.57.

This is a piece of good news after the poor employment data yesterday. Also inflation figures were bearish for the pound (even though good for consumers).

Last month’s drop was marginally revised to the downside: from -2.3% to -2.4%.

The pair made two fast falls yesterday, bottoming out exactly at 1.5650 before bouncing back quickly.

The expectations for a more quantitative easing in the July meeting have risen after the release of the dovish meeting minutes yesterday: BOE governor Mervyn King voted for more quantitative easing.

The  CBI Industrial Order Expectations will be released in the UK later on. For more on the pound, see the GBP USD forecast.