Not even good economic data and a weak US dollar could help the pound get out of the rut it seems to be in. The week had begun brightly for the pound with it managing to hold on to the gains that it had made last Friday on the back of some weak data from the US but ever since then, it has all been downhill for the pound though there has not been much bad news from the UK.
GBPUSD Unable to Find any Traction
Yesterday, we got the UK retail sales data and even though it came in at a stronger than expected value of 0.6% against the expected value of 0.4%, the GBPUSD pair could not gain any traction at all and continued to trade weakly as it approached the US session. The focus yesterday was fully on the euro and some in the market would have expected the uptrend in the euro to help the pound as well but none of this happened as the euro continued to rocket higher leaving the pound in its wake.
The pair continued to weaken and pushed below 1.30 on sustained selling. Even the news of some of the business transactions of Trump being investigated did nothing to strengthen the pair though the dollar got battered across the board. The pound is likely to continue to stay weak in the short term as more clarity emerges about how the Brexit process is going to go and also how much UK is going to lose due to this. The market may also want to watch for more economic data from the UK before it makes up its mind on which way it wants to go with the pound.
Looking ahead to the rest of the day, we do not have any major news from the UK or the US and so expect some more consolidation with a bearish bias during the course of the day today.