A combination of macro factors pushed the pound to a 30-month high against the US dollar on Friday.
Interest rate calls on both sides of the pond this week help to keep the GBP/USD pair elevated.
The US Federal Reserve slashed the bank rate by a chunky 50 basis points, while the Bank of England held steady at a flat 5%, thus increasing the attractiveness of the UK money markets.
This morning’s UK retail sales, meanwhile, substantially overshot forecasts. August sales surged by 2.5%, outpacing the 1.5% consensus forecast to mark the strongest month of growth since February 2022.
It has led to the pound-dollar pair touching 1.33 for the first time since March 2022.