Research Team at BBH, suggests that the UK reported strong January retail sales data. Key Quotes “Headline sales rose 2.3% m/m vs. 0.8% expected, while ex-auto fuel also rose 2.3% vs. 0.7% expected. This is noteworthy, as recent data have come in on the soft side, which in turn has helped push out BOE lift-off into 2017. Yet sterling really had no reaction at all to the data. Indeed, short sterling yields across the strip are actually lower on the day, which does sterling no favors. More important for sterling’s near-term fortunes may be the EC summit in Brussels. The summit began yesterday and ends today, and two issues dominate the agenda: negotiations of the measures needed to avoid a UK exit, and the refugee/immigration challenge. Both issues are thorny, and there is risk that neither issue sees closure. If there is no resolution, it puts more pressure on the March Summit. EU President Tusk reportedly said that he was prepared to extend the summit into Saturday and Sunday if that is what it took to get a deal.” For more information, read our latest forex news.