Pound gains on euro, USD

The pound strengthened Thursday on a report from the Office for National Statistics which revealed that UK retail sales were up 3.5 percent in May against an expected decline and after the governor of the Bank of England said that the Bank will do anything necessary to return UK inflation to its 2 percent target.

In midday trade in New York the pound traded at 78.51p to the euro and it took $1.9742 to buy a pound.

The US dollar was stronger in relation to the euro as the gains in UK retail sales sent investors selling the euro in order to buy the pound, with the greenback trading at $1.5500 to the euro as gains were limited by another contraction in manufacturing activity in the Philadelphia region in June.

The Swiss franc was weaker in relation to the euro and the US dollar after the Swiss National Bank left interest rates there steady at 2.75 percent and after the Bank’s president made comments indicating that he expects inflation there to return to its 2 percent target.

The franc traded at SFr1.6223 to the euro and at SFr1.0467 to the US dollar at midday in New York.

Gains in commodities prices sent the Australian and New Zealand dollars higher in relation to the US dollar, with the greenback trading at 94.97 cents US to the Australian dollar and at 76.13 cents US to the New Zealand dollar.

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