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Can the British Pound Extend its Gains?
Friday, 20 June 2008 21:40:58 GMT  |  Kathy Lien, Chief Strategist
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The British pound has had a great week thanks to broad dollar weakness and strong economic data.

The UK retail sales report has raised a lot of questions as to how much longer the Bank of England can remain on hold.  Earlier this week, Bank of England Governor King warned that inflation could hit 4 percent this year, which is 2 full percentage points higher than their inflation target.  The only thing holding the BoE back from raising interest rates now is growth, but if growth is stabilizing, then a rate hike may be just around the corner.  Unfortunately there isn’t a lot of data to help the British pound next week.  The calendar is relatively light except for a few reports on house prices, the final GDP numbers for the first quarter and current account.

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