Forex News: Pound Rises After Upbeat U.K. Retail Sales Data

Pound Rises After Upbeat U.K. Retail Sales Data

(RTTNews) - The British pound strengthened against other major currencies in the European session on Friday, after data showed that the U.K. retail sales rebounded in December as online jewelers reported a renewed increase in demand for precious metals. In other economic news, data from the Office for National Statistics showed that the U.K. retail sales increased 0.4 percent in December, in contrast to the 0.1 percent fall in November. Economists expected no change in the sales volume in December.

Excluding auto fuel, retail sales moved up 0.3 percent, reversing November's 0.4 percent drop. The monthly increase confounded economists' forecast of 0.2 percent fall.

On a yearly basis, retail sales growth accelerated to 2.5 percent from 1.8 percent in the previous month. Sales were expected to climb only 1.0 percent.

A closely watched survey today showed that British consumer confidence improved in January but continued to remain negative for about ten years.

The British sterling changed little against other major peers after the release of U.K. PMI data.

Data from the S&P Global showed that the U.K. private sector grew the most since early 2024 in January, signaling continued economic resilience despite geopolitical tensions.

The headline composite output index rose more-than-expected 53.9 in January, up from 51.4 in December. The expected score was 51.7. The index has remained above the neutral 50.0 mark for the ninth straight month. Moreover, this was the highest since April 2024.

Service providers reported a particularly strong upturn in business activity, with the rate of growth hitting the fastest for 21 months. The flash services Purchasing Managers' Index improved to 54.3 from 51.4 in the prior month. The reading was seen at 51.7.

At 51.6, the manufacturing PMI rose to a 17-month high from 50.6 in December. The reading was also above forecast of 50.6.

In the European trading today, the pound rose to a 4-day high of 0.8668 against the euro, a 3-day high of 1.0709 against the Swiss franc and more than a 2-week high of 1.3537 from early lows of 0.8709, 1.0652 and 1.3483, respectively. If the pound extends its uptrend, it is likely to find resistance around 0.85 against the euro, 1.08 against the franc and 1.36 against the greenback

Against the yen, the pound edged up to 214.18 from an early low of 212.55. The pound had rose earlier to a 17-year high of 214.85 against the yen. The pound may test resistance around the 214.85 region.

Looking ahead, Canada retail sales data for November and manufacturing sales data for December, U.S. S&P Global Composite PMI for January, U.S. University of Michigan's consumer sentiment index for January, U.S. Consumer Board's leading index for October and U.S. Baker Hughes oil rig count data are slated for release in the New York session.

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