The data release failed to meet expectations, however, with the reading for the Distributive Trade Survey for August falling to -6% from 4%, against an expected rise to 8%. The survey is an indicator of short term trends in the UK’s retail and wholesale distribution centers. Higher risk assets were also boosted by what is deemed as a successful call made between officials from the US and China; news of that success helped shift sentiment into positive territory.
As of 11:31 am in London, the GBP/USD was trading at $1.312, a gain of 0.0431%; the pair has ranged from a session low of $1.30554 to a high of $1.31269. The EUR/GBP was lower at 0.9018 Pence, down 0.0477% and off the session trough of 0.90037 Pence.
Market to Focus on News from US
Later today, market focus will shift to the US where data on the housing sector will be released. The S&P-Case Shiller Home Price Indices for June are expected to show a slight rise to 3.8% from 3.7%. New home sales figures are also expected to show a slight improvement. Also due out later today is the Consumer Confidence Survey and the Richmond Fed Manufacturing Index. The US Dollar has been under pressure recently from concerns over the government’s handling of the Coronavirus pandemic, in regard to lockdown and quarantine measures, as well as the Trump administration’s on again/off again rift with China on trade issues and their handling of Hong Kong security measures.