Pound Sterling strengthens on strong UK April retail sales data

Pound Sterling Strengthens on Robust UK Retail Sales Data Amid US Fiscal Developments

Pound Sterling showed notable strength on Friday as the latest UK retail sales figures for April surpassed market expectations, reinforcing positive sentiment around the British economy. According to the Office for National Statistics (ONS), retail sales increased by 1.2% month-on-month, well above the forecasted 0.2% rise. This marked a significant improvement from March’s modest 0.1% growth. On a year-on-year basis, consumer spending rose by 5%, beating the anticipated 4.5% and reflecting growing household demand.

The rise was driven by strong performances in key sectors including departmental stores, food stores, and household goods stores, which all reported higher sales volumes. This data signals resilient consumer spending, often viewed as a key engine for economic growth, and bolsters expectations that the UK economy is maintaining momentum despite global uncertainties.

The Pound outperformed most major currencies during Friday’s European trading session, buoyed by this encouraging economic report. However, it was still behind gains seen in the antipodean currencies, which also benefited from favorable economic news.

On the other side of the Atlantic, US President Donald Trump’s latest tax and spending bill successfully passed the House of Representatives and now moves to the Senate for consideration. This legislative progress has stirred concerns about the growing US budget deficit but has also influenced currency markets, adding an element of caution for investors.

Overall, the combination of stronger UK retail data and ongoing US fiscal policy developments created a dynamic backdrop for currency movements, with the Pound finding renewed support as traders digest these key economic indicators.