The Pound Sterling falls against the US Dollar as BoE rate-cut bets surge.
Weak UK Retail Sales lift bets supporting BoE rate cuts in August.
Investors await the preliminary US/UK S&P Global PMI data for July.
The Pound Sterling (GBP) continues to hold the key support level of 1.2900 against the US Dollar (USD) in Tuesday’s London session. The GBP/USD pair edges down but remains inside the tight range of 1.2900-1.2940 as the recovery move in the US Dollar (USD), driven by growing speculation of Donald Trump winning the United States (US) presidential elections in November, appears to have stalled with focus on a slew of economic data this week.
The US Dollar Index (DXY), which tracks the Greenback’s value, against six major currencies, hovers near 104.30.
This week, investors will focus on the US preliminary S&P Global Purchasing Managers Index (PMI) for July, Q2 Gross Domestic Product (GDP), and Durable Goods Orders and Personal Consumption Expenditures Price Index (PCE) data for June. The economic data could provide fresh cues about when the US Federal Reserve (Fed) will start reducing interest rates this year.
