Pound Strength Endures as BOE Helps Shift Focus Toward Economy
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As the pound continued strengthening versus most of its major peers in the aftermath of the U.K. election, the Bank of England has helped shift investors’ focus to economic data.
Sterling posted its best week versus the euro in four months as data showed retail sales rebounded in April. Even a drop in inflation to below zero has not unnerved policy makers at the Bank of England, who said price growth should pick up “notably” at the end of 2015 and slack in the economy should be eroded within a year. A report next week will show the economy grew 0.4 percent in the first quarter, according to a Bloomberg survey of economists, faster than the 0.3 percent initial estimate last month.