Forex News: Pound Rises On Strong U.K. Retail Sales Data

Pound Rises On Strong U.K. Retail Sales Data

(RTTNews) - The British pound strengthened against other major currencies in the European session on Friday, after data showed that U.K. retail sales grew more than expected in August as warmer weather boosted food and clothing sales.

Data from the Office for National Statistics showed that the retail sales grew 1.0 percent on a monthly basis in August, faster than the 0.7 percent rise in July. Sales were forecast to climb moderately by 0.3 percent.

On a yearly basis, retail sales growth improved to 2.5 percent from 1.5 percent in July. This was the largest annual growth since February 2022 and stronger than the expected increase of 1.4 percent.

A survey from the Gfk market research group showed that U.K. consumer confidence declined sharply in September. The confidence indicator posted -20 compared to -13 in August.

The British sterling held steady against its major rivals in the Asian trading today.

In the European trading today, the pound rose to a 2-1/2-year high of 1.3341 against the U.S. dollar and more than a 2-year high of 0.8381 against the Euro, from early lows of 1.3272 and 0.8407, respectively. If the pound extends its uptrend, it is likely to find resistance around 1.34 against the greenback and 0.82 against the euro.

Against the Swiss franc and the yen, the pound advanced to nearly a 2-month high of 1.1300 and nearly a 3-week high of 191.12 from early lows of 1.1240 and 188.73, respectively. The pound may test resistance near 1.15 against the franc and 195.00 against the yen.

Looking ahead, Canada retail sales data for July, Canada industrial product, new housing and raw materials price indices for August and U.S. Baker Hughes oil rig count data are slated for release in the New York session.

At 10:00 am ET, the European Commission is slated to issue euro area flash consumer sentiment survey data. The confidence index is forecast to improve to -13.0 in September from -13.5 in August.

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