Sterling struggled on Friday, despite confirmation that retail sales in the UK jumped by 2.3% in January, more than three times the forecasted increase. Sterling did look to be extending recent losses throughout Friday, before investor sentiment turned back into the UK currency’s favour late afternoon. However once there was an announcement of a deal in Brussels sterling rapidly lost ground.
A quiet week lies ahead for sterling on the economic data front, with little in the way of influential data slated for release. Thursday will see the only real figure of note, as the second estimate of quarterly economic growth is released. Following an initial estimate of 0.5% growth, this is expected to remain unchanged in the revised figures.
With the prospect of a referendum on EU membership causing significant uncertainty in the markets, any news that could influence this decision is likely to carry significant weight.