Retail Sales Beat Helps Pound Sterling Tick Higher against Euro & Dollar

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The British Pound firmed on Friday following the release of stronger-than-expected UK retail sales for January, which will contribute to evidence that the economy will exit recession this quarter.

The Pound to Euro exchange rate rose to 1.1698 after the ONS reported retail sales rose 3.2% month-on-month in January, beating expectations for a more modest 1.7% figure, in what amounts to a significant improvement on December’s -3.5% reading.

Retail sales recovered to 0.7% year-on-year in January, from -2.4% in December, and beat expectations for -1.4%.

The Pound to Dollar exchange rate rose to 1.2590 in the wake of the numbers.

The currency reaction is muted in light of the strong moves that followed this week’s inflation and GDP reports, but the retail sales data contributes to a body of evidence that the UK economy started 2024 on a stronger footing.