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Pound stays near 1.3300 as risk mood, UK fiscal worries weigh
Sterling remained near three-week lows despite June retail sales rising 1.0% month over month and 4.2% year over year.
The British pound held close to 1.3300 against the US dollar on Friday, staying near three-week lows and set for a roughly 1.0% weekly decline, even after UK retail sales beat expectations.
FXStreet said the upbeat UK data, which showed retail consumption up 1.0% in June versus a 0.3% forecast and year over year retail sales increasing 4.2% versus a 2.3% forecast, did not offset broader pressure on sterling.
The report attributed that failure to a more risk-averse market backdrop and growing fiscal concerns in the UK, including worries tied to Prime Minister Andrew Burnham’s spending plans.
FXStreet also pointed to external factors pressuring the pound, including reports of attacks on Saudi vessels in the Red Sea that pushed Brent near $100, lifting inflation concerns and sending US Treasury yields to multi-month highs, along with the Trump administration’s announcement of new 10% to 12% tariffs on 60 trading partners.
Latest closeBrent $100.54 ▲6.9%