The positive data from the US retail sales report caused the GBPUSD to climb up last Friday. The data showed an increase of 0.7% in the month of July.
The data went over the 0.3% expectation from the market. Last week, the GBPUSD pair rose 0.24% or 0.0029 points and has traded for £1.2113. The pound to dollar exchange rate reached ranges between £1.2077 to £1.2122 last Friday’s session.
However, analysts were saying that the surge might not last long. Traders were also worried about the inversion of the Treasury yield curve last week.
Some analysts took the inversion as a classic sign of a global recession. GBPUSD traders now remain alert for the direction of the pair.
Experts are saying that the prolonged trade tension between the two giant economies caused the US Treasury yield curve inversion. Beijing’s move to allow its currency to deplete caused the export conflict to turn into a trade conflict.
In response to the recent volatility of the financial market, US President Trump stepped up his demand for an interest rate cut.
Policymakers in the US and around the world are weighing the yield curve inversion; whether a recession will follow, just like in the past.
Greenback and Pound Pairs
Aside from the GBPUSD, other major currency pairs of the US dollar and the British pound got mixed outcomes last Friday.
The USDCNY inched up 0.9%, or 0.0061 points, and was traded for $7.0388. The AUDUSD pair slightly moved up 0.06%, or 0.0003 points, trading for AU$0.6779.
Meanwhile, the EURUSD inched down 0.22%, or 0.0024 points, and has reached levels of €1.1079
The GBPAUD trading pair gained 0.47%, or 0.0084 points, in last week’s session. The EURGBP pair declined 0.69%, or 0.0063 points, and was traded for €0.9125.
The GBPCNY climbed up 0.70%, or 0.0597; the pair traded for £8.5580 and has reached ranges of £8.4960 to £8.5614.