Yesterday data on CBI retail sales volume balance in May was published. The reading was -11 vs. forecast for 4 and -1 in April. Bank of England Deputy Governor Charles Bean told about difficulties in coordination of monetary policy, export of services, etc. According to a money manager at Pacific Investment management Co. (Pimco), the pound may drop to a 4-year low of 1.37 per US dollar during Mark Carney's tenure at the Bank of England. The Organization for Economic Cooperation and Development (OECD) slashed the UK growth outlook to 0.9% in 2013. Nevertheless, the pound grew 90 points.
Today at 10:00 GMT+4 UK Nationwide House Price Index in May is published, forecast 0.5% vs. -0.1% in April.
Technically, we expect the pound will grow to the range limited by Fibonacci level 23.6% on the H4 and resistance of the downward Fibonacci extension 1.5186-1.5200.
