GBP review

Sterling caught a broad pop and strengthened to two-month highs against the euro after U.K. consumers stepped up spending in April, which served as a reminder of the overall sound shape of Europe's No. 3 economy. The 1.2 percent gain in retail sales was three times stronger than forecasts of a 0.4 percent increase. 

The U.K. consumer had turned frugal in March when spending contracted 0.7 percent. Sterling remains in a hole on the week against the dollar, still nursing a wound torn open by inflation figures which showed the first negative print in 55 years which reinforced Britain's low interest rate outlook for the foreseeable future.