- The pound fails to gain a foothold in the market and remains weak.
- GBP / USD points to the 200-day moving average.
The GBP / USD prolonged the bearish run and fell to 1.3784, reaching the lowest level since July 27.. The pair maintains a bearish tone in a context of weakness of the British currency and where the DXY rises 0.15%.
GBP / USD is about to approach the 200-day moving average that is passing 1.3780. Tuesday’s bearish tone is trailing behind a rise in the dollar on all fronts, despite falling Treasury yields.
Following UK employment, US retail sales follow.
The main indicators of the June UK labor market beat expectations. The unemployment rate fell to 4.7% in the last three months and wages rose more than expected. The positive data was overshadowed by a decline of just 7,800 applications for unemployment benefits, compared to 114,800 the previous month. The data did not have a significant impact but did not help the pound to regain strength in the market.
In the US, the economic calendar is loaded on Tuesday, with the data of July retail sales (a modest decline is expected), the industrial production report and the real estate sector confidence index. In addition, Jerome Powell will speak, in a virtual meeting with students and teachers, and Neel Kashkari, from the Minneapolis Fed, will speak in public more later. The minutes of the last Fed meeting will be released on Wednesday.
Technical levels
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