Strong UK Data Sends Sterling Higher
The British Pound leapt nearly half a percent against the US Dollar, closing up 0.47% to end the trading week at 1.4405. The primary cause of the jump was a strong set of Retail sales figures from the UK which surpassed analyst’s expectations.
Retail sales in the UK jumped 2.3% in January, up from the 1.4% recorded in January and considerably higher than the 0.8% predicted by analysts. Meanwhile, core retail sales in the UK, which excludes the volatile automobile sales data, rose 5.0% annually, easily beating the 1.8% increase recorded in the previous month, and easily surpassing the 3.5% forecast by analysts.
Public Sector Net Borrowing
News also released regarding the UK economy – the world’s 5th largest economy, was data that showed public sector borrowing fell less than expected last month. The decline to -11.81B, from the 7.49B recorded in the previous quarter. This came after analysts had been expecting UK public sector net borrowing to decline to -13.95B for the last quarter.
Overall, it has been a volatile week for Cable, with mixed data releases from both the UK and the US, with UK CPI meeting expectations and the US Philadelphia Manufacturing Index missing market forecasts.
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