The British pound rallied to post a fresh one-year high, riding on the back of hawkish comments from the Bank of England. Despite the weak wage growth dampening investor sentiment, the Bank of England said that interest rates like to rise in the coming months. The comments helped fuel the rally in the British pound which was seen briefly trading at $1.3400.
In the US trading session, the monthly inflation data showed an increase in headline consumer prices. Rising at a pace of 0.4%, it was the largest monthly increase since January this year. On a year over year basis, US consumer prices were seen rising 1.9% in August. While the US dollar managed to post some gains, the currency was still trading weaker against its peers.
Looking ahead, the last trading day of the week will see the release of the monthly retail sales figures from the US Core retail sales are expected to rise 0.5% on the month, while headline retail sales are expected to moderate, rising 0.1%. This comes after the retail sales surged 0.6% the month before.
