Pound Sterling Holds 1.3372 After Strong Retail Sales
GBP/USD trades at 1.3372 after UK retail sales beat expectations by 0.7%.
The British pound stands at 1.3372 against the US dollar. The currency is up 0.1% during the European session on Friday. This movement follows the release of UK economic data.
UK Retail Sales grew by 0.5% in August. Markets had expected a 0.2% contraction. The data reversed the previous month's decline.
Retail sales beat market consensus
The Office for National Statistics reported the monthly increase. Excluding fuel, sales of other products rose 0.6%. Analysts had predicted a 0.2% drop in this category.
The result indicates broad-based consumer spending strength. The data was the most positive surprise in recent UK reports. It provided temporary support for the sterling.
Weekly losses persist despite data
The pair remains near seven-week lows. It is on track for a 1.15% weekly decline. This trend persists despite the favorable retail numbers.
Diverging monetary policies from the Fed and Bank of England drive the weakness. The central banks made different decisions earlier this week. These moves outweighed the impact of the retail data.
Technical levels define current range
Traders see slight bids below the trendline at 1.3360. The currency is testing this support zone. The market awaits further signals before reversing direction.
GN auto markets/forex notes the pound's resilience. The pair holds above the critical 1.3360 level. Volatility remains contained in the current session.
