The British Pound Just Received a Double Boost against USD — Waiting for the Thursday’s Vote

The British pound rebounded as slowing US retail sales growth weighed on the dollar. During today’s, June 18, U.S. session, the British pound rebounded to the resistance level of 1.2700 against the U.S. dollar. The GBP/USD currency pair attracted buyers interest after the U.S. monthly retail report for May showed that retail store sales increased by 0.1%, lower than the expected 0.2%.

The report also showed that consumers drastically cut their discretionary spending budgets, which indicates that the fiscal crisis has deepened — apparently due to the protracted increase in the Federal Reserve's interest rates — and the artificially depressed gasoline prices that have led to a decrease in revenue at gas stations.

Speaking about the future scenario for GBP/USD, If Dave Ramsden, Deputy Governor for Markets and Banking at the Bank of England, withdraws his vote for a rate cut on Thursday at the BoE meeting, the British pound will likely rise even higher, as this will greatly reduce the possibility of a rate cut in August. The Bank of England is expected to keep interest rates at current levels, indicating that any rate cut decision will be commensurate with the upcoming economic data. Meanwhile, the consensus assumes that the decision will keep interest rates unchanged.