GBP/USD falls below 1.3300 as robust growth and cooling inflation reduce BoE rate hike bets.
The British Pound Sterling slid to a four-week low against the US Dollar, trading below 1.3300 and down 0.3% on Monday. The decline followed a week of unexpectedly strong UK economic data, including a 1% rise in June retail sales and a rebound in private sector activity.
Consumer confidence hit a six-month high in July, while June’s Consumer Price Index cooled to 2.6% year-over-year, with services inflation easing to 3.6%. Despite the growth, markets interpreted the data as reducing pressure on the Bank of England to tighten policy further.
Brent crude oil’s 9% drop on Monday, following diplomatic developments, further weakened the case for additional BoE rate hikes, eroding Sterling’s summer rally.