- Unexpected Rise in UK Retail Sales Doesn’t Bolster Sterling.
- US Consumer Confidence Plummets; Inflation Forecasts Reach Highest Levels in Years.
- Market Participants Weigh Conflicting Trade Indications as China Considers Waiving Tariffs on American Products.
The British Pound Sterling declines against the robust US Dollar, but stays above the 1.3300 threshold. Despite positive UK Retail Sales figures, Cable was unable to gain traction, declining by 0.20% with the GBP/USD pair trading at 1.3311.
GBP/USD Stays Afloat Above 1.3300 Amid Soft US Confidence, Elevated Inflation Projections, and Persistent Tariff Uncertainty
The prevailing market theme remains centered on US President Donald Trump’s trade strategies and China’s reaction to imposed tariffs. While economic data has played a secondary role, the weakening US Consumer Sentiment and a robust UK Retail Sales report kept the GBP/USD exchange rate from breaching the 1.33 level.
According to Bloomberg, China is considering tariff waivers on select US goods due to increasing expenses. This development initially boosted market optimism and improved risk appetite, but the effect proved temporary.
