UK retail sales rose 1.2% in May, exceeding forecasts and lifting the pound from near-term lows against the yen.
The GBP/JPY pair rebounded nearly 50 pips from a one-month low after UK retail sales data surpassed expectations. May’s retail sales grew 1.2%, reversing April’s 1.0% decline and beating the 0.5% forecast.
Core retail sales also rose 1.2%, compared with an upwardly revised 0.1% drop in April. Despite the upbeat data, the cross remains on track for weekly losses, trading below 213.00.
Political uncertainty and reduced Bank of England rate hike bets may limit further gains for the pound.