The pound remained volatile against the dollar and the euro as traders braced for a week of key economic data releases. Uncertainty surrounding the future of Brexit negotiations continued to weigh on the currency.

Inflation Data in Focus

Inflation figures are expected to be a major driver of pound movement. Higher-than-expected inflation could pressure the Bank of England to raise interest rates sooner than anticipated.

Key Data Points to Watch:

• Consumer Price Index (CPI)
• Producer Price Index (PPI)
• Retail Sales Figures

Analysts suggest that strong economic data could provide a boost to the pound, while weak figures could trigger further declines.

Brexit Negotiations Loom

Developments in the Brexit negotiations are also expected to impact the pound. Any signs of progress in the talks could provide some support for the currency.

However, continued uncertainty and disagreements could lead to further volatility.