GBP / USD is trading near 1.3600 under pressure after the UK saw a 2.5% drop in retail sales, far worse than expected. The dollar is taking advantage of flows of investors and traders seeking safe havens. Speculation about reducing the packing of Fed assets continues.
GBP / USD fell in the Asian trading session today. After falling from the top last day at 1.3760 in the US session, the pair moved to 1.3600. Sterling continues to fight against greenbacks in terms of risk avoidance.
The US Dollar Index (DXY), which tracks the performance of the US dollar against its six main competitors, is trading at 93.55. The latest FOMC meeting showed that Fed employees are likely to reduce incentives by the end of this year, provided there is a significant improvement in labor market conditions.
Gfk’s UK consumer confidence index fell to -8 in August from -7 in the previous month, the highest level since the start of the COVID pandemic -19.
For now, investors are turning their attention to GBP retail data to assess market sentiment.
From a technical point of view, the cable shows weakness, the daytime running candle closes very “bearish”, indicating a potentially continuing downward movement. The price goes to 1.3600 where it can find support and make an adjustment around 1.3700, where the attention of the sellers will be located.