Pound Reaches Over Three-Year High Amidst Uk Retail Sales Surge and Us Uncertainty

The British pound surged to its highest level in over three years on Friday. This surge was fueled by unexpectedly strong UK retail sales data and ongoing investor unease surrounding U.S. assets. Sterling is on track for its largest weekly gain against the dollar since early April. UK retail sales volumes jumped by 1.2% month-on-month in April. This followed a downwardly revised 0.1% increase in March, according to the Office for National Statistics. Economists had forecasted a more modest rise of 0.2%. The pound hit a high of $1.3468, a level not seen since February 24, 2022. Investor nervousness about the global economy is driving capital out of U.S. markets. Higher gilt yields have also made sterling more attractive to non-UK investors.