Silver lining for British buying French property ?

Sterling rose slightly this week after a smaller than expected fall in UK retail sales and factory orders suggested that the B of E may put off cutting interest rates in coming months as it tackles rising inflation risks.

Retail sales fell 0.2% in April from March, clocking a second monthly slide but coming in slightly stronger than forecasts for a 0.5% fall. The previous month's figures were also revised to show a smaller fall.

While the sales data showed that sluggish spending may continue to weigh on the economy, analysts said the state of the economy still allowed the Bank of England some leeway to keep monetary policy tight in the light of inflation pressures.

The most recent evidence of higher prices came in the form of the industrial trends survey, which also showed that firms expect to raise prices at the fastest rate in 13 years.

With oil prices hitting record highs, some said that currencies whose central banks are intent on stamping out inflation risks, like the Bank of England and the European Central Bank, were being rewarded, as risks to their official rates were tilted to the upside.

Right now Interbank is at 1.2577
with Natwest offering 1.20.

source: IFX