BML 5.10 Increased By ▲ 0.09 (1.8%)
BOP 11.81 Decreased By ▼ -0.06 (-0.51%)
CNERGY 7.14 Decreased By ▼ -0.02 (-0.28%)
CPHL 88.20 Decreased By ▼ -1.09 (-1.22%)
DCL 14.15 Increased By ▲ 0.34 (2.46%)
DGKC 168.50 Increased By ▲ 2.50 (1.51%)
FCCL 46.43 Increased By ▲ 0.08 (0.17%)
FFL 16.12 Increased By ▲ 0.14 (0.88%)
GCIL 27.90 Decreased By ▼ -0.55 (-1.93%)
HUBC 141.84 Decreased By ▼ -1.14 (-0.8%)
KEL 5.11 Decreased By ▼ -0.03 (-0.58%)
KOSM 6.35 Increased By ▲ 0.06 (0.95%)
LOTCHEM 21.37 Increased By ▲ 0.44 (2.1%)
MLCF 84.75 Increased By ▲ 0.12 (0.14%)
NBP 121.22 Increased By ▲ 0.95 (0.79%)
PAEL 42.85 Decreased By ▼ -0.45 (-1.04%)
PIAHCLA 21.15 No Change ▼ 0.00 (0%)
PIBTL 9.12 Increased By ▲ 0.49 (5.68%)
POWER 13.81 Decreased By ▼ -0.20 (-1.43%)
PPL 172.74 Decreased By ▼ -0.76 (-0.44%)
PREMA 43.75 Decreased By ▼ -1.16 (-2.58%)
PRL 33.48 Increased By ▲ 0.31 (0.93%)
PTC 25.27 Increased By ▲ 1.26 (5.25%)
SNGP 120.30 Decreased By ▼ -0.79 (-0.65%)
SSGC 46.60 Increased By ▲ 0.65 (1.41%)
TELE 8.40 Increased By ▲ 0.35 (4.35%)
TPLP 10.72 Increased By ▲ 1.00 (10.29%)
TREET 23.90 Decreased By ▼ -0.39 (-1.61%)
TRG 57.95 Decreased By ▼ -0.48 (-0.82%)
WTL 1.61 Increased By ▲ 0.06 (3.87%)
BR100 13,524 Decreased By -23.5 (-0.17%)
BR30 39,727 Decreased By -15.3 (-0.04%)
KSE100 133,403 Increased By 33 (0.02%)
KSE30 40,651 Decreased By -53.9 (-0.13%)

LONDON: Sterling fell versus the dollar on Thursday after data showed U.S. retail sales unexpectedly increased in August, while Asian stock losses spooking sentiment also weighed on sterling.

A surge in online and furniture store purchases in the United States offset a continued decline at auto dealerships, which could temper expectations for a sharp slowdown in economic growth in the third quarter.

Versus the dollar, sterling fell 0.5% to a one-week low of $1.3770 at 1500 GMT, off the 5-week high of $1.3913 touched earlier this week.

“The dollar is bid across the board with the U.S. data beat sending yields higher supporting the dollar,” said Jeremy Stretch, head of G10 FX Strategy at CIBC Capital Markets. He added that the weak performance across Asian bourses is also impacting “risk-sensitive crosses including cable.”

Versus the euro, sterling edged 0.1% higher at 85.42 pence, after jumping to one-month high of 85.01 earlier in the day.

Sterling has gained momentum this week as traders assessed the Bank of England’s next move after data showed British inflation rose in August by 3.2% in annual terms, the biggest monthly jump in the annual rate in at least 24 years, fuelling expectation of a rate increase.

The BoE expects inflation to hit a peak of 4% this year. The strong reading for inflation could reinforce expectations that the central bank is set to tighten monetary policy quicker than the European Central Bank or the U.S. Federal Reserve.

“Should UK growth/inflation data come in on the strong side, the market’s search for the BoE terminal rate could keep GBP supported,” said Chris Turner, global head of markets at ING in a note to clients. A poll from Reuters found that investors believed the BoE would raise borrowing costs by the end of 2022. The latest inflation numbers brought forward these expectations to mid-2022.

Comments

Comments are closed.