Pound set to end week higher after upbeat UK retail sales and Brexti poll

Sterling was lifted after an Ipsos-Mori poll published on Wednesday that showed 55 percent of those surveyed supported staying in the European Union and just 37 percent wanted to leave. Earlier, a YouGov poll had showed the “In” camp with a four-point lead.

Also helping support the pound was a robust UK retail sales report out on Thursday which diminished chances of an interest rate cut that some investors are factoring in. April retail sales increased 1.3 percent in April from a month ago, beating forecasts of a 0.5 percent rise, and gaining 4.3 percent on an annual basis.

The British currency surged to a 3 1/2-month high against a trade-weighted basket of currencies on Thursday, to rise to 87.9, its highest since February 5.

GBPUSD rose to a two-week high of $1.4663 after the retail sales data, while the euro slumped to 76.485 pence against the pound, its lowest since early February. It was trading at 76.72 pence before the retail sales data were released. By early Friday trading, the pound eased slightly but mostly held onto gains.

The better-than-expected figures will lend support to UK markets and add to confidence that despite referendum worries consumer spending is growing.

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