Pound (GBPUSD=X)

The pound rose slightly in early European trading on Friday, up 0.1% to $1.2397, though it was still trading at its lowest point in nearly nine months.

Data from the British Retail Consortium released on Friday showed a 2.2% decline in footfall on UK high streets in December. For the three months to December (also known as the golden quarter) footfall decreased by 2.5% year on year.

Sterling dropped to its lowest point since April 2024 on Thursday, after data showed that factory output fell at the fastest rate in 11 months.

The latest UK purchasing managers' index, which is compiled by S&P Global, fell to 47 in December. This marked it lowest reading since February 2024, with a figure below 50 considered to signal a deterioration.

Read more: FTSE 100 LIVE: Markets tepid as data shows UK retail footfall declines 2.2% in December

Rob Dobson, director at S&P Global Market Intelligence, said: "A stalling domestic economy, weak export sales and concerns about future cost increases led to the steepest contraction of UK manufacturing production for almost a year in December."

"Manufacturers are facing an increasingly downbeat backdrop," he added. "Business sentiment is now at its lowest for two years, as the new government's rhetoric and announced policy changes dampen confidence and raise costs at UK factories and their clients alike."

Meanwhile, the pound was also little changed against the euro (GBPEUR=X), at €1.2063.

Gold (GC=F)

Gold prices were muted on Friday morning, softening after a strong start to the year this week.

The spot price fell slightly, down 0.2% to $2,652.31 per ounce, while gold futures were flat at $2,666.90 per ounce.

The precious metal had a solid start to 2025 this week, with investors gearing up for president-elect Donald Trump's return to the White House later this month.

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Investors tend to look towards safe-haven investments, such as gold, in times of geopolitical and economic uncertainty.

According to Reuters, Tim Waterer, chief market analyst at KCM Trade, said: "We have seen an uptick in safe-haven flows, which has been to the benefit of gold.

"Any pullback in the US dollar could prove to be a catalyst for gold to break out higher."

Oil (BZ=F, CL=F)

Oil prices also softened on Friday morning, after seeing gains earlier in the week following strong economic data from China, the world's largest oil importer.

Brent crude futures fell 0.3% to $75.71 per barrel, while US West Texas Intermediate (WTI) crude also dipped 0.3% to $72.92 per barrel.