The pound gained ground against other major currencies on Thursday as the nation's retail sales recovered at a stronger than expected pace in February, showing signs that economic growth is gathering pace.
U.K. retail sales recovered at a stronger than expected pace in February, official data revealed Thursday.
Retail sales volume including automotive fuel rose 1.7 percent in February from January, the Office for National Statistics said. Sales were expected to grow 0.5 percent after falling 2 percent in January.
Excluding auto fuel, retail sales gained 1.8 percent in February, in contrast to a 2 percent fall in the prior month. Economists were looking for a 0.3 percent rise.
Year-on-year, retail sales volume including automotive fuel grew 3.7 percent in February. Although the rate slowed from the 3.9 percent seen in January, it exceeded 2.4 percent rise forecast by economists.
The pound approached 1.6639 against the greenback, setting an 8-day high and was up by 0.4 percent from Wednesday's closing value of 1.6577. The pound is likely to find resistance around the 1.67 area.
The pound hit 170.00 against the yen for the first time since March 13. This is up almost 0.8 percent from early 2-day low of 168.62. Further gains may take the pound to a resistance at the 170.00 mark.
The pound appreciated to 1.4738 against the franc, its strongest since March 7. Next possible upside target level for the pound lies at the 1.485 area.
The pound strengthened to a 3-week high of 0.8269 against the euro, compared to yesterday's closing value of 0.8303. Further rally may see the pound facing resistance around the 0.81 mark.
Looking ahead, the U.S. weekly jobless claims for the week ended March 22, fourth quarter GDP data and pending home sales for February are set for release in the New York session.
