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The growth of the retail sales volume in the UK increased expectations concerning interest rates growth and thus increased the British currency too. According to the data provided by the Office of National Statistics the retail sales reached the highest level throughout the May increasing monthly by 3.5 percent. Such growth was quite unexpected as the forecasts provided by the experts supposed only stable volume of retail sales (with 4.2 percent annual growth) not growing one (8.1 percent annual growth).

The British pound decreased in relation to the United States dollar. And as traders think it will contribute to lowering the levels of rates cut from the Federal Reserve. The British currency decreased by 4% in relation to the USD caused by the belief that the UK’s Central Bank trails the Federal reserve in terms of borrowing-cost reductions. A new report from UK government will provide us with numbers showing the slowdown of the Great Britain economy throughout the 3 months of the year 2008.