Despite positive data releases yesterday, the pound was weak against both the euro and dollar. Sterling particularly struggled against the greenback, which rose against a basket of currencies. This morning, the pound is still weaker against the dollar but firm against the euro.
UK retail sales for January beat expectations of 0.7%, coming in at 0.8% year-on-year and 0.9% month-on-month. This was due to a stronger demand for clothes and footwear and marked its largest monthly rise since March. There was also moderate growth by food retailers.
Today, a series of PMI figures will be released, which could have an impact on sterling. They’re expected to move slightly higher across the board, with manufacturing predicted to move out of contraction territory.
