Sterling Soars as UK Retail Sales Surpass Expectations

Sterling saw a notable rise, achieving its strongest weekly gain since August, due to stronger-than-expected UK retail sales and business activity figures. Meanwhile, the euro slipped against the pound, and the data raised questions about future interest rate decisions by the Bank of England.

Sterling experienced a significant uplift on Friday, marking its strongest weekly performance against the dollar since August, propelled by unexpectedly robust UK retail sales and business activity data.

The British pound advanced 0.2% to $1.3525, indicating a weekly rise of over 1%. In contrast, the euro fell by 0.36% to 86.73 pence. Analysts noted that while retail figures were optimistic, they could be volatile.

Market watchers are keenly focused on upcoming interest rate decisions from the Bank of England, which is anticipated to maintain its current rate stance in February, despite mounting inflationary pressures.

(With inputs from agencies.)