STERLING sustained further losses over the week against the dollar and euro, as news of a rise in inflation and stronger-than-expected retail sales failed to provide a boost and Brexit fears continued to dominate.
The pound was, at 5pm in London yesterday, trading around $1.2733. It had closed on August 10 at $1.2768, down more than 2.5 cents on its August 3 close.
The euro was, at 5pm, trading around 89.62p. The single currency had closed on August 3 at 89.33p.
Foreign Secretary Jeremy Hunt said in Helsinki this week: “Everyone needs to prepare for the possibility of a chaotic no-deal Brexit.”
David Madden, analyst at CMC Markets, noted sterling had experienced a “subdued session” against the dollar yesterday because of a lack of economic announcements from the UK.
He added: “Sterling has lost a major amount of ground versus the US dollar in recent weeks, and uncertainty around Brexit is the main factor.”
Official data this week showed UK retail sales volumes rose by a greater-than-expected 0.7 per cent on a seasonally adjusted basis last month, having fallen by 0.5% in June. Annual UK consumer prices index inflation rose from 2.4% in June to 2.5% last month.
Mr Madden said: “The UK’s firmer CPI [inflation] rate and the impressive retail sales numbers couldn’t prop up the pound, and this could be an indication of what is to come.”
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