Home›Forex›Major Pairs›Pound slips against dollar after UK retail sales drop

Pound slips against dollar after UK retail sales drop

GBP/USD was last around 1.3626, as US Services PMI strengthened and the US 10-year yield rose toward weekly highs.

Reported · Written up by our desk · Major Pairs

The British pound eased versus the US dollar after UK retail sales disappointed, while sterling still looked set to end the week higher versus the greenback. FXStreet said GBP/USD was trading near 1.3626, down about 0.02%.

In the US, S&P Global data showed a stronger August Services PMI, rising from 54.6 to 56.8, above estimates, while the Manufacturing PMI came in at 53.2, below expectations and July’s reading. The same report attributed the dollar’s steadier tone to firm US yields, with the US Dollar Index (DXY) near 98.88.

US 10-year Treasury yields were up nearly three basis points to about 4.736%, approaching weekly highs after a US Treasury buyback that included $4 billion in long-end bonds in the 10 to 30 year range to support liquidity. The article noted the move initially pushed yields lower, then reversed as some traders interpreted the buyback as akin to yield-curve control.

Attention is now on Jackson Hole, with traders watching for Fed Chair Kevin Warsh to outline the expected path for interest rates. In the UK, retail sales fell 0.9% month over month, worse than forecasts, and money markets were still pricing in one Bank of England rate hike.

Latest closeGBP/USD 1.354 ▲0.3%|Dollar index 99.64 ▼0.3%

More like this

Sources