The greenback is seen gaining ground against the pound sterling (GBPUSD) after the release of the positive US retail sales data. The US market was delighted with the news and the US dollar index steadied.
The US dollar index or DXY inched up 0.07% or 0.07 points today. The pound dollar exchange rate rose 0.24% or 0.0029 points in Friday’s session. The GBPUSD currently trades at £1.2113 compared against its previous close of £1.2084.
The weaker-than-expected data caused the greenback to regain strength after faltering against other currencies like the Japanese yen. According to the report, the US retail sales data climbed 0.7%.
The data surpassed the 0.3% forecasted by analysts. However, despite the good results, experts are still warning that its effect might not last long.
Aside from the GBPUSD, the USD is trading flat against other currencies. The CADUSD exchange pair slightly inched up 0.03% or 0.0002 points in today’s session.
The CADUSD currently trades at CA$0.7514 and has only reached levels of CA$0.7504 to CA$0.7521.
Meanwhile, the USD declined against the EUR and CNY. The EURUSD slipped 0.18% or 0.0021 points and the CNY USD went down 0.29% or 0.0004 points.
More on the Pound
Another factor that affects the GBPUSD pair is the deteriorating confidence of sterling traders as Brexit approaches. There are only a few weeks before the much-awaited departure of the UK from the EU.
The pound currency is also seen declining against other major currencies. The EURGBP exchange pair lost 0.48% or 0.0044 points this Friday’s session.
The EURGBP presently exchanges at €0.9143, edging lower than its last close of €0.9188.
The CADGBP pair went down 0.27% or 0.0017 points, trading at CA$0.6198 in sessions. And the AUD GBP declined 0.19% or 0.0010 points.
The direction of the pound and the greenback remains uncertain as the market continues to weigh on its current fundamentals.
Meanwhile, GBPUSD traders are on the edge of their seats as the pound continues to weaken and the greenback receives mixed forecasts.