The British pound continued to be strong against the other major currencies in the European session on Thursday, after data showed that U.K. retail sales increased for the first time in four months in February.

Data from the Office for National Statistics showed that the retail sales volume grew 1.4 percent month-on-month in February, reversing a 0.5 percent fall in January and bigger than the 0.4 percent expected increase.

On a yearly basis, retail sales volume growth accelerated to 3.7 percent from 1 percent in January. This was also faster than the expected 2.6 percent.

Excluding auto fuel, retail sales volume climbed 1.3 percent in contrast to a 0.3 percent fall in January. Sales were expected to grow 0.3 percent. The annual growth in sales volume, excluding auto fuel, improved to 4.1 percent from 2.1 percent. Economists had forecast a 3.2 percent rise.

In the Asian trading, the pound rose against its major rivals. In the European trading, the pound rose to nearly a 1-month high of 1.2527 against the U.S. dollar, a 3-week high of 1.2444 against the Swiss franc and nearly a 3-week high of 0.8605 against the euro, from early lows of 1.2463, 1.2365 and 0.8654, respectively. If the pound extends its uptrend, it is likely to find resistance around 1.26 against the greenback, 1.26 against the franc and 0.85 against the euro.

Against the yen, the pound edged up to 139.14 from an early low of 138.39. The pound may test resistance around the 141.00 region.

Looking ahead, U.S. weekly jobless claims for the week ended March 18, U.S. new home sales data for February and Eurozone consumer confidence index for March are slated for release in the New York session.

At 8:45 am ET, Federal Reserve Chair Janet Yellen will deliver opening remarks at the Federal Reserve System Community Development Research Conference, in Washington DC.

At 12:30 pm ET, Federal Reserve Bank of Minneapolis President Neel Kashkari is expected to speak about the US education outcomes and achievement gaps at the Federal Reserve System Community Development Research Conference, in Washington DC.

At 1:00 pm ET, Swiss National Bank Governing Board Member Andrea Maechler will deliver a speech titled "The SNB Investment Policy and its Peculiarities" at the Money Market Event, in Zurich.

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