[vc_row][vc_column][vc_column_text]The pound was hit by volatility again last week as some mixed economic data and Brexit developments weighed on the currency.

Sterling started the week on the back foot as Brexit uncertainty reared its head following the warning the previous week that a transitional agreement for the UK was ‘not a given’.

GBP was able to rally on Tuesday however as the UK’s inflation figures came in higher than expected in January.

This prompted a surge in speculation that the Bank of England (BoE) may seek to hike interest rates in May.

GBP then wobbled in the middle of the week when the IMF published its latest UK assessment, with the Fund warning about Britain’s moderating growth.

The pound faced another setback on Friday morning as the UK’s latest retail sales came in well below expectations.

Fortunately Sterling was able to recoup most of these losses later in the day as investors welcomed Brexit talks between Theresa May and Angela Merkel in Berlin, allowing the pound to close the week on a high note.

Looking ahead to this week’s session the focus is likely to be on the UK’s latest labour market report, with expectations that employment will have accelerated in December likely to strengthen GBP.

The accompanying earnings figures, however, may prove to be even more impactful, with any signs that wage growth is beginning to pick up likely to prompt the pound to surge.

To request an instant quotation on a currency quotation please click here
* Information courtesy of Currencies Direct, Philip McHugh
The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information. This article was written by Currencies Direct.[/vc_column_text][/vc_column][/vc_row]