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Sterling Range-Bound Despite Upbeat UK Retail Sales and PMI Data

July 24, 2020 at 12:22 by Simon Mugo

A column of 50 British pound notes

The Sterling pound today traded sideways against the US dollar despite the release of multiple positive macro prints from the UK docket in the London session. The GBP/USD currency pair traded in a tight range as investors worried about the prospect of a no-deal Brexit and the high chance of the second wave of coronavirus infections.

The GBP/USD currency pair today traded between a high of 1.2772 and a low of 1.2717 and was within the upper portion of this 55 pip range at the time of writing.

The currency pair today oscillated between gains and losses as investor sentiment towards it remained decidedly bearish. The release of the upbeat UK retail sales data for June had a brief positive impact on the pair. According to the UK’s Office for National Statistics, headline retail sales fell 1.6% versus the expected 6.4% contraction, while core retail sales expanded 13.5%, beating analysts estimates of 7.5%. The upbeat Markit/CIPS flash UK manufacturing PMI for July, which came in at 53.6 versus consensus estimates of 52, and the flash UK Services PMI, which was 56.6 versus the expected 51.1, had a minimal impact on the pound.

Comments by the UK Prime Minister Boris Johnson regarding the rising coronavirus infections also weighed on the cable. Johnson said that the government was relying on the good sense of the British people to curb a possible spike in infections during the winter months.

The currency pair’s future performance is likely to be affected by US dollar dynamics and geopolitical events.

The GBP/USD currency pair was trading at 1.2758 as at 12:21 GMT, having rallied from a low of 1.2717. The GBP/JPY currency pair was trading at 135.59 having fallen from a high of 136.04.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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