GBP/USD Dips Despite Mixed Data, Still Heads for Weekly Gains
The British Pound Sterling has had a mixed week in terms of economic data, but still manages to be on track for weekly gains. Against the US Dollar, the GBP/USD dipped slightly, down by just 0.02% at 1.3626. The UK's Retail Sales disappointed investors with a drop in July, partly reversing strong gains from prior months.
On the other hand, US business activity improved in August, with the Services PMI rising to 56.8, crushing estimates of 54. According to Brown Brothers Harriman's Elias Haddad, GBP/USD is firmer on broad US Dollar weakness despite mixed UK data.
Haddad notes that market pricing of 50 bps Bank of England hikes over twelve months as too aggressive, but still sees the UK's growth-inflation mix supporting the Pound. The GBP/USD remains poised to end the week with gains of over 0.60%.