Sterling rises against dollar for third straight session

Sterling rose against the dollar away from January 17 lows, following earlier data from the US, the world's largest economy, and amid a lack thereof from Britain. 

As of 04:16 GMT, GBP/USD rose 0.37% to 1.3946 from the opening of 1.3894, with an intraday high at 1.3973, and a low at 1.3800. 

Earlier US data showed retail sales fell 0.3% in January, missing expectations of a 0.2% rise, and compared to December's 0.4% rise, while core sales., excluding automobiles, were unchanged last month, compared to a 0.4% rise in December, while analysts expected a 0.5% rise. 

US consumer prices rose 0.5% m/m in January, beating expectations of a 0.3% rise, and compared to December's 0.1% increase, while core prices, excluding food and fuel, rose 0.3% m/m, beating expectations of a 0.2% rise, and same as December, 

On a yearly basis, consumer prices steadied at 2.1% unchanged from December, beating expectations of 1.9%, while core prices also steadied at 1.8%, above forecasts of 1.7%. 

Strong inflation data stoked expectations of four Fed rate hikes this year, however expectations reversed quickly after data showed retail sales fell last month, raising questions about the strength of the US consumer, and throwing the number of expected rate hikes this year into the air again. 

New Federal Reserve Chair Jerome Powell said in recent remarks that the Fed will continue backing economic growth and stable prices, noting he swore to execute his duties to his fullest efforts, while asserting the Fed will continue monitoring risks on financial stability and carry on the path of policy tightening.