GBP to USD exchange rate increased in the last week after some mixed news from both parts of the world. Though, U.S. Inflation data boosted bets for the expected hike in the US interest rate, GBP exchange rate also stood taller following higher than expected retail sales report.
Based on US inflation data, US consumer price index surged 0.2% in the last month, beating analyst’s expectations for the rise of 0.1%. Core CPI increased 0.3% compared to the expectations of 0.2%, the largest monthly boost since February.
However, British Pound currency rate to USD appreciated, following lower than expected U.S. retail sales. US core sales remained negative at 0.1 percent, when analysts were expecting positive growth of 0.3 percent. Meanwhile, retail sales declined even higher than the expectations of -0.1% to -0.3 percent.
In addition, GBP to USD rate also experienced strong support on the back of higher than expected retail sales report from U.K.. Its retail sales increased comfortable by 6.2%, compared to the analyst’s consensus for the growth of 5.3%. This report help GBP to USD currency converter rate to gain momentum.
However, analysts believe that the GBP to USD currency rate looks bound to break beneath the key 1.30 level over coming days with the USD prone to stay bolstered by developing expectations that a September interest rate climb would be conveyed by the US Federal Reserve.
Investors are buying the US Dollar, as higher inflation rate and upcoming major data release prior to the US Fed’s decision may bend fed’s members towards an interest rate hike. In addition, on the back of some big changes in the US political environment and fiscal landscapes on the scope, GBP to US dollar exchange rate is expected to experience major movement.