Pound Falters Amid Weak UK Sales, But Remains Poised for Weekly Gains
The British Pound (GBP) took a slight dip against the US Dollar (USD) on Friday, despite remaining poised to end the week with gains of over 0.60%. The GBP/USD pair currently trades at 1.3626, down 0.02%, after reaching its highest level since February 11 at 1.3675.
The disappointing UK Retail Sales figures for July were a major contributor to the Pound's decline, shrinking by 0.5% month-over-month compared to the previous 0.7% print. In contrast, US business activity improved in August, with the Services PMI rising from 54.6 to 56.8, crushing estimates of 54.
The US Dollar Index (DXY) remains flat at 98.88, underpinned by the rise in US yields, which have increased nearly three basis points to 4.736%. The upcoming Jackson Hole meeting will be closely watched, with traders awaiting Federal Reserve Chair Kevin Warsh's speech outlining the forward path for interest rates.