The British pound saw a brief rise on Friday, fueled by unexpectedly robust retail sales data for February, which raised hopes for consumer durability amidst an otherwise sluggish economy. According to the Office for National Statistics, retail sales climbed 1.0% from January, contradicting economists who forecasted a 0.4% decline.
This positive retail uptick follows December’s dismal performance, a crucial holiday shopping period. After the data release, Sterling reached a session high of $1.297 before settling at $1.295. Concurrently, the euro dipped 0.25% against the pound, registering at 83.20.
Amid turbulent market conditions, traders continue to speculate a 50% chance of the Bank of England cutting rates in May. Recently, the pound has been entangled in global market volatility, exacerbated by President Trump’s proposed tariffs on imported cars, adding to fears of an all-out trade war.
(With inputs from agencies.)