The British Pound might find the Bank of England keeps interest rates elevated for longer as the Government agrees to a round of inflation-busting pay increases.

Pound Sterling continues to retreat from recent highs, helped along the way by UK retail sales data that showed a sharp slump in activity in June.

Just-released wage data are no smoking gun for an August interest rate cut, however Pound Sterling's bullish run could be entering a consolidative phase against the Euro and Dollar.

Pound Sterling defended its recent gains after UK inflation hit the target in June and left markets none the wiser as to whether the Bank of England would proceed with an interest rate cut in August.