“The pound rose against the dollar, snapping a three-day drop, as reports showed inflation above economists’ forecasts and higher retail sales, stoking speculation that the Bank of England may raise interest rates.

“Although inflation is supposed to be coming down, it’s not falling as expected,” said George Tchetvertakov, head of market research at Alpari Ltd., a U.K.-based online foreign- exchange provider. “We could see sterling strength.”” Read more.

“Pound Rises After Data Show Higher-Than-Expected Inflation”
Bloomberg Businessweek, July 13, 2010.

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