The Pound is vulnerable. Overview for 19.08.2022

GBPUSD continues falling; July lows are ahead. 

The Pound Sterling is looking weak against the USD. The current quote for the instrument is 1.1858.

The statistics published earlier today didn’t provide the Pound with any support. Retail Sales in the United Kingdom added 0.3% m/m in July against the expected reading of -0.25 m/m. Core Retail Sales gained 0.4% m/m after adding 0.4% m/m in June and against the expected decline of 0.2% m/m. 

At the same time, on YoY, Retail Sales lost 3.4% against the expected decline of 3.3%. 

One reason is that high inflation in the country didn’t allow to expect any surges in retail sales. Given the circumstances, both reports are looking quite good. Another reason is that consumers don’t have an underlying strength – sooner or later, retail sales will plummet. Seriously and for the long haul. These expectations put additional pressure on the Pound. 

In addition, the Pound is attacked by the USD. The “greenback” is strong, because investors are interested in it as a “safe haven” asset. 

Like we said before, the Pound is very vulnerable. And as time goes by, it doesn’t get any better.