Sterling gains after strong U.K. retail sales

GBP/USD rose 0.2% to 1.2891, after British retail sales rose 0.7% on the month in June, more than the 0.2% rise expected. This is still 1.0% lower than a year earlier but beat forecasts for a 1.5% decline.

“Retail sales grew strongly, with food sales bouncing back from the effects of the extra bank holiday, partly helped by good weather, and department stores and furniture shops also having a strong month,” ONS chief economist Grant Fitzner said.