UK Retail Sales Rise, Pound Ticks Up Amid Fed Hike Uncertainty

The pound strengthened slightly on Friday after data showed UK retail sales unexpectedly rose in August. According to the figures, retail sales volumes increased by 0.5 percent from July, beating economists' forecasts of a 0.2 percent fall.

Compared with last year's August numbers, overall sales volumes were up by 2.4 percent. The pound ticked up by 0.1 percent to USD1.337 after the release of these figures.

Despite this slight rise, the pound is still set for its biggest weekly fall since June at 1.2 percent due to the US Federal Reserve's interest rate hike on Wednesday and hawkish language suggesting more increases could come.