Pound Maintains Strength Against Dollar Amid Weakened US Economic Data

The British pound has maintained its strength against the US dollar in early Asian trading on Friday, hovering around 1.3645. The greenback faces dual pressures from weaker-than-expected US economic data and diminished expectations of further Federal Reserve rate hikes.

This has provided some support for the pound, which is now shifting focus to the UK's July retail sales data. Analysts expect a 0.5% month-on-month decline in retail sales, following a 1.0% increase in June.

Rising US Treasury yields do not necessarily guarantee appreciation of the US dollar. Market analysts suggest that if the increase in yields primarily reflects US fiscal risks or persistent inflation rather than stronger economic growth or significant tightening of monetary policy, the supportive effect may be limited.