Domestic growth in the UK is looking to prosper but global recovery may have other thoughts for the pound.

The United Kingdom's retail sales are expected to rise for a third straight month indicating that consumers aren't afraid to help jump start the economy. There have been increases in non-food and non-specialised stores, which is a good sign that people are spending their money more freely. Other support for the economy and the pound have come from a stabilising housing market and a slowed rate of job loss.

All the aforementioned positives have helped the exchange rate of the pound since early March, but despite all the good news, the outlook for a global recovery has diminished. As the conflicts of the domestic and global economies continue, there will be a slightly bearish outlook for the pound.

The battling of economies has the sterling's exchange rate at USD1.636 and EUR1.173.

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The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.