Pound Holds Steady at $1.3434 After Steep UK Retail Sales Drop

The pound remained flat around $1.3434 on Friday as UK retail sales posted their sharpest monthly decline in nearly a year. April volumes fell 1.3% month-on-month, well below the -0.6% consensus, with core sales also missing forecasts. The weak print follows April CPI cooling to 2.8% year-on-year from 3.3% in March, which had already eased near-term BoE tightening expectations. Despite the downside pressure and higher public borrowing, sterling stayed on track for a weekly gain amid easing political risks and medium-term rebound potential noted by strategists.