Uncertainty surrounds future BoE interest rate increases

Daily Currency Update

On Friday, the Office for National Statistics (ONS) released data indicating a decrease of -1.2% in the monthly UK Retail Sales for July. This was more significant than the anticipated drop of -0.5%. Furthermore, the yearly retail sales figure experienced a decline of -3.2%, in contrast to the projected -2.1%.

Market sentiment continues to suggest that the Bank of England (BoE) will persist with its tightening policies. However, there exists apprehension surrounding the possibility of an aggressive interest rate hike by the BoE. This concern has the potential to exert downward pressure on the Pound, driven by investor worries about its potential adverse effects on the UK economy.