The pound (GBP) closed last week’s session on a positive note, with the UK’s latest PMI and retail sales both outpacing expectations. On top of this, the UK also recorded a record budget surplus in January, in what should be a boost for Chancellor Rachel Reeves ahead of her Spring Statement next month. Turning to the start of this week, a renewed focus on UK politics ahead of the Manchester byelection on Thursday could apply a layer of risk to Sterling.