The Pound Sterling rises by some 0.40% on Friday as a batch of US data justifies the Fed’s dovish approach, with consumer sentiment deteriorating while the disinflation process improved.
The GBP/USD trades at 1.3545 after bouncing off daily lows of 1.3482
GBP/USD climbs as soft US spending and sentiment boost Fed hold bets In the week, GBP/USD is poised to finish the week in the green. The US Dollar Index (DXY), which measures the buck’s performance against six currencies, is down 0.40% to 99.54, set to end near weekly lows as traders priced out Fed interest rate hikes. US July Retail Sales snapped nine months of straight gains, declining 0.6%, below forecasts for a 0.1% increase.
Sales in the control group, used in the calculation of the Gross Domestic Product (GDP), dropped as well by -0.4%, after registering a 0.4% growth in June, according to the US Commerce Department. The University of Michigan Consumer Sentiment, in its preliminary August reading, deteriorated as households remained concerned about elevated prices. The index fell from 55.2 in July to 51.0, snapping two straight months of improvement.