TheÂ British pound today dropped toÂ new 10-month lows following theÂ release ofÂ disappointing UK retail sales data forÂ June. TheÂ GBP/USD currency pair extended its losing streak forÂ theÂ third consecutive day even asÂ investors ditched theÂ pound onÂ Brexit jitters amid recent weak economic releases.
TheÂ GBP/USD currency pair today dropped from anÂ initial high ofÂ 1.3082 toÂ aÂ low ofÂ 1.2974 andÂ was onÂ aÂ downtrend atÂ theÂ time ofÂ writing.
TheÂ UK retail sales data released today byÂ theÂ Office forÂ National Statistics accelerated theÂ pair’s decline, which had begun inÂ theÂ mid-Asian session. TheÂ headline UK retail sales contracted byÂ 0.5% inÂ June as compared toÂ theÂ consensus estimate ofÂ aÂ 0.2% expansion. TheÂ core retail sales figures also fell byÂ 0.6% inÂ June, which was aÂ major disappointment forÂ investors who were expecting 0.2% growth. AÂ senior statistician atÂ theÂ ONS Rhian Murphy stated that:
Retail sales grew strongly across theÂ three months toÂ June 2018 asÂ theÂ warm weather encouraged shoppers toÂ buy food andÂ drink forÂ their BBQs.
However, he attributed theÂ June slump toÂ shoppers staying home due toÂ theÂ heatwave while watching theÂ FIFA World Cup. TheÂ US dollar continued toÂ gain against theÂ pound even asÂ theÂ US andÂ China exchanged harsh words due toÂ unsuccessful negotiations.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ Brexit headlines, theÂ release ofÂ US initial jobless claims data, andÂ theÂ Philadelphia Fed business outlook survey.
TheÂ GBP/USD currency pair was trading atÂ 1.2991 asÂ atÂ 11:40 GMT having dropped from anÂ initial high ofÂ 1.3082. TheÂ GBP/JPY currency pair was trading atÂ 146.80 having declined from aÂ high ofÂ 147.55.
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