The Pound Sterling edged lower as the appetite for risk waned among FX traders, and sent them over to the safe-haven currencies instead. Growth data from China was better than analysts had expected with China's Bureau of National Statistics reporting 2nd quarter GDP at 3.2% on a year-over-year basis, well above the 2.1% that had been predicted, while on a quarter-over-quarter basis, the data came in at 11.5% against an expected 9.6%. Nonetheless, the news failed to instill any confidence in investors. In the UK, labor data was, on the whole, slightly better than had been anticipated. Again, the news failed to shift sentiment as concerns over the Coronavirus and the Brexit still weigh heavily.
As of 11:21 am in London, the GBP/USD was trading at $1.2535, down 0.13% and off the earlier posted low of $1.25194. The EUR/GBP was higher at 0.9084 Pence, up 0.0319%; the pair has ranged from a trough of 0.90573 Pence to a high of 0.90955 Pence. The GBP/JPY was down at 134.325 Yen, a loss of 0.191%.
US Data in Focus
Labor data from the US will be released later today, with analysts confident that there will have been some improvement in the number of claims for unemployment benefits. Also due out today, the US Census Bureau will be reporting sales data, with the June figure for the Retail Sales Group expected to come in at 3.6%, a significant decline from the previous 11% reading. Retail sales excluding car purchases should come in at 5%, down from 12.4%, while pure retail sales are predicted at 5%, down from 17.7% in May. Analysts say that the data will hint at the impact Coronavirus is having on the psyche of consumers, even as some government officials are easing quarantine restrictions despite rising numbers of infected.