The British pound rose above $1.30 after UK retail sales data showed unexpectedly strong consumer spending in September, suggesting resilience in the economy.
Retail sales in UK boost pound
Retail sales volumes increased by 0.3%, surpassing expectations of a 0.3% decline, despite concerns about potential tax hikes in the upcoming government budget. This marks a 1.9% rise in sales for the third quarter, the largest since mid-2021.
Bank of England may reconsider its dovish stance
The data led to speculation that the Bank of England might reconsider its dovish stance on interest rates. However, the pound was still set for its third weekly drop against a strong US dollar.
