UK retail sales dropped 0.9% in August, missing forecasts, while US services PMI rose to 56.8, boosting USD demand.
The British Pound weakened against the US Dollar after UK Retail Sales contracted 0.9% month-over-month in August, worse than the expected 0.5% decline. The data weighed on GBP/USD, which traded at 1.3626, down 0.02% on the day but still up over 0.60% for the week.
In the US, S&P Global’s Flash PMI showed mixed results. Services PMI surged to 56.8 in August from 54.6, beating estimates of 54, while Manufacturing PMI fell to 53.2, below July’s 53.9. The US Dollar Index remained flat at 98.88, supported by rising US Treasury yields, with the 10-year note yield climbing nearly three basis points to 4.736%.
Markets now await Fed Chair Jerome Powell’s speech at Jackson Hole, where guidance on future interest rate policy is expected. The US Treasury’s $4 billion bond buyback in the 10-30-year range also influenced yields, though initial market reactions have faded.