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Sterling Firm On Positive Retail data

Sterling Firm On Positive Retail data

The British Pound’s strong start to 2022 extended through mid-February and the UK currency looks set to benefit from a post-Omicron growth rebound and expectations for further Bank of England interest rate hikes.

Geopolitical tension between the US and Russia regarding Ukraine is still causing a risk averse tone in investor sentiment with markets keeping a close eye on any developments. Currency-wise, the main pairs continued to operate within tight ranges with sterling retaining a slightly firmer tone and edging slightly higher against the euro and the dollar yesterday.   

In level terms, the slightly firmer tone in sterling has seen the GBP/EUR open this morning just above the 1.1975 with GBP/ USD operating above the 1.36 handle. The EUR/USD also finds itself changing hands in the top half of the 1.13-1.14 range.

Datawise, UK retail sales have already been released with figures coming in above expectations thus providing some support to the pound in early trading. Elsewhere, Eurozone consumer confidence is due alongside a number of Fed officials prepared remarks.

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