GBP/USD jumps to 1.6150 after Retail Sales

The pound strengthened the most in four weeks against the dollar after a government report showed U.K. retail sales rose more in September than analysts forecast.

Sterling advanced versus all of its 16 major peers as the data added to signs Britain’s economy is gathering momentum. The pound also gained versus the euro. U.K. 10-year government bonds rose, with yields falling the most in more than three weeks, as investors bet disruption from the U.S. debt-ceiling debate will prompt the Federal Reserve to maintain asset purchases. The U.K. sold 4.75 billion pounds ($7.68 billion) of five-year gilts.

“There’s a lot of bullish sentiment towards the pound,” said Kathleen Brooks, European research director at Forex.com in London. “It’s being driven by a weak tone in the dollar combined with the U.K. data. We could retest the high from early October at $1.6260.”

Bloomberg

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