Forex News: Pound Climbs On Robust U.K. Retail Sales Data

Pound Climbs On Robust U.K. Retail Sales Data

(RTTNews) - The British pound strengthened against other major currencies in the Asian session on Friday, as the U.K. retail sales expanded at the fastest pace in eight months in January due to the rebound in food store sales volume.

Data from the Office for National Statistics showed that the U.K. retail sales volume increased 1.7 percent in January from December. The monthly growth confounded a revised fall of 0.6 percent in December.

This was the first increase in five months, the biggest growth in eight months and was also stronger than the expected increase of 0.4 percent.

On a yearly basis, retail sales growth softened to 1.0 percent in January from 2.8 percent in December. Economists had forecast sales to log a much weaker growth of 0.6 percent.

Investors are making largely cautious moves while digesting data on the nation's manufacturing and services sector activity as well a report on retail sales.

Data from the market research group GfK showed that British consumer sentiment rose moderately in February. The consumer sentiment index gained two points to -20.

All sub-indices of consumer confidence were up from January. The index measuring the past personal finances rose three points to -7, while the outlook for personal finances climbed four points to +2.

Data from S&P Global/CIPS showed that the seasonally adjusted U.K. Manufacturing Purchasing Managers' Index, or PMI declined to 46.4 in February from 48.3 in January. Meanwhile, the score was expected to be at 48.5.

The preliminary services business activity rose slightly to 51.1 in February from 50.8 in January, while coming in above the estimated 50.8 reading.

In the European trading today, the pound rose to more than a 2-month high of 1.2679 against the U.S. dollar, from an early low of 1.2647. The pound is likely to find resistance around the 1.28 region.

Against the yen and the Swiss franc, the pound advanced to 2-day highs of 190.95 and 1.1395 from early lows of 189.37 and 1.1372, respectively. If the pound extends its uptrend, it is likely to find resistance around 197.00 against the yen and 1.15 against the franc.

The pound edged up to 0.8273 against the euro, from an early low of 0.8292. On the upside, 0.80 are seen as the next resistance level for the pound.

Looking ahead, Canada retail sales data for December, U.S. S&P Global PMI data for February, U.S. existing home sales data for January, U.S. University of Michigan's consumer sentiment for February and U.S. Baker Hughes oil rig count data are slated for release.

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