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GBP/USD Shrugs off Poor UK Retail Sales

UK Retail Sales in May fell at -0.5%. This matched forecast. April's reading was revised down from 1.3% to 1.0%. A slump in demand at food stores was the main contributor to the decline in May. 

(source: tradingeconomics.com)

Since food sales surged the previous month, May's decline may not be that bad. Carney and the BoE has hinted that it may even raise rates late 2014 and the market continues to price this in. 

With rate hike expectation being the dominant theme, the GBP/USD shrugged off the poor retail sales data and surged to a new high on the year. It is now about to challenge the 2009-high at 1.7040, a break above which would be a major bullish continuation signal.

(gbpusd 4h chart, 6/19)