Pound Gains on Good Retail Sales

The pound sterling enjoyed an early week boost this week, as good data on the British economy was released.

According to the figures, retail sales were up year-on-year in December, with many shops reporting good sales figures for the Christmas shopping period. Indeed, on Boxing Day there were some record numbers recorded for some high street chains.

In addition to the good retail numbers, there was better-than-expected news on the UK's trade deficit - it shrunk enough for some economists to predict that the country exited the recession in the fourth quarter.

Currency exchange traders and experts will be keeping a close eye on the pound in the first half of this year, as it reacts to the country's general elections.