Forex - Sterling remains lower, shrugs off upbeat UK retail sales

2 257 0 administrator

Forex - Sterling remains lower, shrugs off upbeat UK retail sales

 

The pound remained weak against the slightly stronger US dollar on Thursday, despite evidence that retail sales in the UK rose faster than expected in June.
GBP / USD was at the level of 1.2969 to 05.24 in the Eastern time (09.24 GMT), near daily lows of 1.2973.
The Office of National Statistics reported that retail sales increased by 0.6% last month, compared with a 0.4% forecast after falling 1.1% in May.
Retail sales increased by 2.9% compared to the same period last year, ahead of growth forecasts of 2.5%.
This was promoted by warmer weather, which helped to increase sales of summer clothes and compensate for the decline in sales of food and fuel, said ONS.
The report indicates that consumer spending continues to be held in the face of rising inflation, which undermines household incomes.
Inflation sharply accelerated after last year's vote in Brexit, as the sharp drop in the pound sterling led to an increase in import prices, which led to fears of a decline in living standards with rising wages and rising prices.
Sterling was lower against the euro, EUR / GBP increased by 0.28% to 0.8865 on the eve of the upcoming meeting of the European Central Bank on the same day.
Investors were waiting for new tips on the future of the incentive program from ECB President Mario Draghi.
The US dollar rose against the basket of other major currencies, making a breather after sharp declines in recent sessions.
The US dollar index, which measures the strength of the dollar against a weighted basket of six major currencies, rose 0.22% to 94.85, still about 11.2-month low at 94.27, touched on Tuesday.
The dollar collided with pressure amid growing speculation that a relaxed inflation forecast would undermine this case when the Federal Reserve again raises interest rates this year, politicians say.
The prospect that other central banks can join the Fed in tightening the policy also contributed to the weakening of the dollar.
The dollar also came under pressure, as Republicans' unsuccessful attempts to reform health care showed that other legislative efforts by President Donald Trump, such as a review of the tax code and the introduction of tax incentives, could be difficult.