The British pound erased early gains and traded 0.2% lower at $1.3048 Friday after data showed retail sales unexpectedly fell in December, marking the fifth consecutive time consumers failed to increase their spending. Several Bank of England policymakers, including Governor Mark Carney, have said over the past weeks that they would support an interest rate cut later this month if economic data does not improve significantly. Against the euro, the pound was flat at 85.22 pence. Historically, the British Pound reached an all time high of 2.86 in December of 1957.
The British Pound is expected to trade at 1.30 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.27 in 12 months time.