The unimpressive data from U.K. led British Pound currency rate to decline to three weeks low just after hitting a high of 1.3268 on Aug 3. Lower expectations for BOE rate hike and higher than expected growth in US retail sales led Pound exchange rate to dip sharply this week. Lower growth in U.K. labor market has been forcing BOE to make a potential growth in interest rates.
GPB/USD exchange rate declined to 1.2880 and plunged rapidly to the area of 1.2840 at one point. The pound sterling exchange rate performed worst in European currencies.
UK retail sales growth was lower than expected in July, but numbers were still close to hit analysts forecast.
The zone around 1.2840 is a key here and now bolster and a tear lower could open the ways to a more articulate negative conclusion around the pound currency rate. On the other way, Sterling exchange rate needs a move over 1.2900 keeping in mind the end goal to have the capacity to construct recuperation.
The pound rate soared sharply in opposition to the euro currency rate before declining back, following the European Central Bank (ECB) increased concerns that mutual cash could hamper the economy.
The euro has fortified as of late as business sectors predicts the ECB could decrease its tremendous cash printing program from 2018.
Be that as it may, policymakers fear that the strong growth in euro rate, which has already touch more than two year highs compared to the US dollar exchange rate, could have a negative impact on economic environment. The British pound is at present moving to break over 1.09 against the eurozone money. Overall, pound could remain under pressure in the short-term against major currencies amid bearish economic reports and an expected economic growth in Euro zone and the United States.