Pound Rises After Upbeat UK Retail Sales Data

(RTTNews) - The British pound strengthened against other major currencies in the European session on Friday, after U.K retail sales grew unexpectedly in June as warm weather boosted outdoor product sales.

Data from the Office for National Statistics showed that the retail sales increased 1.0 percent in June, following a rise of 1.2 percent in May. Economists had forecast sales to fall 0.3 percent in June.

Excluding auto fuel, retail sales rose at a slower pace of 1.1 percent after climbing 1.2 percent in the prior month. Sales were forecast to fall 0.4 percent.

On a yearly basis, retail sales increased 4.2 percent from the previous year, faster than the 3.5 percent increase seen in May. Excluding auto fuel, retail sales growth accelerated to 5.4 percent from 4.9 percent in May.

European stocks rebounded after having suffered their steepest single-day loss in over two weeks amid elevated oil prices and concerns over heavy AI spending.

Traders bought the dip as Brent crude futures slumped nearly 4 percent below $97 a barrel after rising above $100 a barrel on Thursday following Houthi attacks on tankers in the Red Sea.

In the European trading today, the pound rose to 1.3339 against the U.S. dollar, 218.35 against the yen and 1.0885 against the Swiss franc, from early lows of 1.3306, 218.01 and 1.0873, respectively. If the pound extends its uptrend, it is likely to find resistance around 1.36 against the greenback, 219.00 against the yen and 1.09 against the franc.

Against the euro, the pound edged up to 1.0843 from an early 10-day low of 0.8550. The pound may test resistance around the 0.83 region.

Looking ahead, U.S. new home sales for June, U.S. S&P Global PMI reports for June, Canada new housing price index for June, manufacturing sales, PPI and raw materials prices data, all for June and U.S. weekly Baker Hughes oil rig count data are slated for release in the New York session.