By Sam Coventry

We take a look at the latest action in the main pound sterling (GBP) exchange rate pairings on Friday morning.

The British pound (GBP) has proven to be remarkably resilient to a slew of disappointing morning data. Retail sales data released this morning showed a 1.5% drop in sales, yet this has failed to affect the pound too much.

A look at the key pound sterling exchange rates shows:

Mystery of the pound to dollar exchange rate rise

The pound dollar exchange rate (GBP/USD) has found a solid bid following on the disappointing data; this has left a few big names in the currency world scratching their heads.

"The aggressive buybacks post-data gathered curiosity. In fact, the Cable is squeezed by unsupportive macro news this week. Remember, the CPI y/y fell to 1.9%, below BoE’s 2.0% target, while the unemployment increased from 7.1% to 7.2% in December reading. The rapidity of recovery states that traders still see buying interest in GBPUSD, despite the lower-low-lower-highs trends building since February 17th. Trend and momentum indicators remain bullish, yet a close below 1.6668 should favor the short positions from next week," says a note from Swissquote Bank.

Pound to euro exchange rate (GBP/EUR)

Trading has managed to remain above 1.21 in the last few sessions as interest hawks seek the pound.

Today, despite the disappointment in retail sales, data pressure remains firmly on the euro.

"Sterling rallied during early trading and the currency's strength has not eased just yet. We expect the pound has enough support to keep levels above 1.21," says Sasha Nugent at Caxton FX.

Pound sterling to Australian dollar exchange rate (GBP/AUD)

Larger supply of iron ore may reverse the Aus dollar's recent gains as demand for the commodity from its trading partner China declines. For now though, the neutral stance from the RBA is supporting the Aussie limiting further upside in the rate.

"Trading remains above 1.85 and demand for sterling remains. As a result levels around 1.8520 look likely today," says Nugent.

Australian dollar traders sold the Aus dollar on news iron ore prices fell back to year low levels (at about $850 on active contract).

"AUDUSD remained in the tight range of 0.8992/0.9015, the bullish momentum loses pace," says Swissquote.

Pound to New Zealand dollar exchange rate (GBP/NZD)

GBP/NZD has been trading within range for a number of sessions and it is unlikely things will change today.

"Sterling remains in favour as interest rate expectations underpins the pounds momentum. Sterling will attempt to close above 2.01 but levels still remain within recent ranges," says Nugent.

Pound to Canadian dollar (GBP/CAD) powers higher

The big moves in the world of currencies over the past 24 hours has been the renewed weakening in the Canadian dollar (CAD).

CAD is still feeling the effects of a poor wholesale sales figures and the GBP/CAD rate has now reached 12 month highs breaching 1.86 earlier this morning.

CPI data will be released this afternoon and considering the BoC’s concern regarding low inflation, this figure will be watched closely.

It seems the CAD is once again at the mercy of a buoyant pound and a close above 1.86 is in sight.