Pound Edges Up as UK Retail Sales Exceed Forecasts

The pound rose slightly after UK retail sales data showed an unexpected increase in August.

Retail sales volumes rose by 0.5% from July, beating economists' forecasts of a 0.2% decline.

This growth marks the third consecutive month of rising retail sales, which is increasing pressure on the Bank of England to hike interest rates.

Paul Dales, chief UK economist at Capital Economics, said 'For now, the resilience of the economy is one more thing nudging the Bank of England closer to raising interest rates.'

The Bank of England kept rates on hold at 3.75%, but indicated an increased likelihood of future rate hikes due to strong economic data.