GBP/USD Stagnant as Soft US Data and Ongoing Tensions Weigh
The GBP/USD exchange rate remained range-bound on Thursday, failing to gain significant momentum despite various economic data releases.
The UK economy grew by 0.4% in the second quarter, as expected, but some economists warned that growth could slow further in the second half of the year due to persistent inflation and the ongoing conflict in the Middle East.
In contrast, the US Dollar found support earlier in the day due to concerns surrounding the US-Iran war, but it later came under pressure after the release of the latest US producer price index figures, which showed factory gate inflation unchanged in July.
The 'Greenback' faces further challenges ahead with two important US data releases scheduled for Friday: retail sales and the University of Michigan's preliminary consumer sentiment index. A weaker reading could add to concerns over the strength of US consumer spending and the wider American economy.