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Sterling slips to a four-week low below 1.3300 per dollar

The pound fell after a run of stronger UK data and cooling inflation prints, while an oil drop and renewed US tariff concerns added pressure.

Reported · Written up by our desk · Major Pairs

British Pound Sterling traded below 1.3300 against the US dollar on Monday, about 0.3% lower on the day and back near levels last seen in early July, as FXStreet said the move reflected the end of Britain’s strongest data run since spring.

FXStreet linked the retreat to a series of positive UK releases that markets appeared to interpret as reasons to sell sterling, including retail sales rising 1% in June versus expectations for a slight decline, consumer confidence reaching a six month high in July, and preliminary business activity surveys pointing to private sector expansion.

The outlet also cited inflation cooling, with the Bank of England survey showing easing inflation expectations and June CPI already down to 2.6% year over year, while services inflation fell to 3.6%. FXStreet said the idea of growth arriving without accompanying inflation reduced the currency’s appeal in a market that had been pricing BoE rate increases.

Finally, FXStreet pointed to energy and trade drivers, saying sterling’s summer rate bid was energy led. It noted that crude prices dropped sharply after a pause between Washington and Tehran, improving Britain’s terms of trade and disinflation outlook, and it also flagged a new US tariff wave that includes the UK as a fresh concern ahead of the next BoE policy update.

Latest closeWTI crude $81.92 ▼8.3%

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