GBP/USD Pushes Against Six-Month Highs Amid Weak US Dollar

The British Pound has maintained its gains against the US Dollar despite downbeat UK Retail Sales data. The GBP/USD pair is trading at six-month highs near 1.3660, with a weekly rally of 0.8% on track.

This comes as the US Dollar remains weak due to Treasury's bond buyback plans and fading Federal Reserve rate hike expectations. Charu Chanana, chief investment strategist at Saxo, noted that higher Treasury yields do not necessarily support the USD if investors believe it reflects fiscal risk or persistent inflation rather than stronger US growth.

The UK Retail Sales data showed a 0.5% contraction in July, in line with market expectations, following a 0.7% increase in June. Year-over-year sales increased at a 1.6% pace, down from 3.8% in June and below the consensus of 2.2%.