- GBP/USD has picked offers around 1.1850 as the DXY is attempting a rebound ahead of US Retail Sales.
- A preliminary estimate for the US Retail Sales is 0.8% vs. -0.3% released earlier.
- Political instability and recession fears have shifted the pound bulls on the tenterhooks.
The GBP/USD pair has slipped to near 1.1830 after facing hurdles modestly above 1.1850 in the Asian session. The cable has displayed a subdued performance after a less confident rebound from Thursday’s low at 1.1760. Generally, a soft rebound turns quickly into a downside move as the market participants consider that trade a bargain sell.
The cable is expected to witness a steep fall after slipping below the intermittent support of 1.1820 as the US dollar index (DXY) is set to rebound after a modest correction. The DXY witnessed a steep fall on Thursday after printing a fresh 19-year high of 109.26. A rebound is expected amid higher consensus for US Retail Sales.
The US Retail Sales are seen at 0.8% for June, higher than the prior release of -0.3%. Fuel prices have shifted into bearish territory now but remained extremely solid in June. Therefore, higher energy bills must have been responsible for the higher consensus for the economic data. Also, higher Consumer Price Index (CPI) data released on Wednesday is sufficient to support higher forecasts for Retail Sales.
On the pound front, political instability and recession fears have shifted the pound bulls on the tenterhooks. The resignation of UK PM Boris Johnson has trimmed the confidence of the households in the growth prospects of the economy. Also, the scorching inflation rate has triggered recession fears. More rate hikes from the Bank of England (BOE) will remain on the cards and it would be interesting to note whether the economic catalysts would support BOE for policy tightening unhesitatingly.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains offered around 1.1380
The EUR/USD maintains its bearish tone on Tuesday, presently lingering around the 1.1380 zone amid the persistent buying pressure on the US Dollar. The improved sentiment in the Greenback comes amid rising US yields and mixed US data results from JOLTs and US Factory Orders.
GBP/USD treads water in the low-1.3500s
GBP/USD stays in the offered position on Tuesday and trades in the low-1.3500s, constantly following the strong rise in the Greenback. In the meanwhile, Cable's price movement is in line with Bailey's cautious tone and the mixed data from the US docket.
Gold bounces off lows, retargets $3,350 and above
Gold is falling from its multi-week high of over $3,400 achieved on Monday. It is currently losing further momentum and flirting with the $3,350 region per troy ounce on the back of a strong Greenback, higher yields and mixed US data.
Cardano Price Forecast: Sign of robust bullish reversal emerges despite dwindling DeFi TVL volume
Cardano rebounds to test resistance at $0.69 as technical indicator flashes a buy signal. A minor increase in the derivative Open Interest to $831 million suggests growing trader interest in ADA.
AUD/USD drifts lower amid cautious RBA, global trade uncertainty
AUD/USD retreats to 0.6460 as Aussie loses ground after Monday’s rally. RBA minutes reveal that the board debated a 50 bps interest rate cut but opted for a 25 bps cut to preserve predictability. Focus shifts to US JOLTS Job Openings due later in the day, Wednesday’s Australian GDP and Friday’s NFP for fresh cues.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.