GBP Holds Gains Against USD Amid Weak UK Retail Sales

The British Pound (GBP) has maintained its gains against the US Dollar (USD), pushing against six-month highs in the 1.3660 area, on track for a 0.8% weekly rally.

UK Retail Sales contracted 0.5% in July, meeting market expectations, but this did not deter the GBP/USD pair from its bullish tone, as the US Dollar remains under pressure due to the US Treasury's plan to boost buybacks of long-term securities.

The decline in UK Retail Sales was broad-based, with sales excluding fuel falling 0.9% in July, reversing the 0.9% increase posted in June.

Public Sector Net Borrowing increased by GBP 1.8 billion in July, below June's GBP 12.78 billion but exceeding market expectations of GBP 0.3 billion.