October 18, 2024
New Delhi, India
Pound Sterling (GBP/USD)
The Pound Sterling (GBP) gained strength on Friday, driven by stronger-than-expected UK Retail Sales for September. Retail Sales grew by 0.3% month-on-month, defying economists’ predictions of a 0.3% decline. On a yearly basis, consumer spending increased by 3.9%, exceeding the estimated 3.2%.
The positive Retail Sales data reduced expectations for a near-term Bank of England (BoE) rate cut, despite recent CPI data suggesting inflation is easing. The services sector inflation dropped to 4.9%, the lowest since May 2022, signaling that price pressures are easing.
Also Read: USDINR Today: Rupee Gains Amid Modest USD Decline, Faces Pressure from Crude Prices and More
Meanwhile, the GBP/USD pair rebounded from the 1.3000 level as the US Dollar weakened. The Dollar Index (DXY) edged lower to 103.65, following a five-day winning streak. Traders are betting on a gradual interest rate cut by the Federal Reserve, with expectations of a 25 bps cut in both November and December.
In the US, upbeat Retail Sales data (+0.4% in September) and lower Jobless Claims (241K vs. 260K expected) reinforced confidence in the economy’s resilience. Speculation surrounding Donald Trump’s potential return to office also boosted the Dollar, as markets anticipate policies like higher import tariffs and tax cuts.
Also Read: Gold Price Hits Record High Beyond $2,700 Amid Rate Cut Expectations and Geopolitical Tensions
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