• The Pound Sterling is trading mixed in its key pairs at the start of the new week. 
• GBP is rising against the US Dollar as recession concerns haunt USD – versus the Yen it is weakening due to strong Japanese data.
• From a technical perspective, GBP/USD continues rising in an established short-term uptrend. 
   

The Pound Sterling (GBP) trades mixed in its most heavily traded pairs on Monday despite positive economic data releases of late. The Sterling is gaining against the US Dollar (USD) but trading flat against the Euro (EUR) and falling against the Japanese Yen (JPY). GBP’s recent moves have less to do with news or data out of the UK and more to do with the volatility in its counterparts. 

Pound Sterling mixed but resilient after string of positive data

The Pound Sterling is trading mixed at the start of the new week. Recent assessments of the UK economy have been mostly positive, with some economists describing it as striking a “Goldilocks” balance between “not too cold” and “not too hot”. 

Headline Inflation is hovering around the Bank of England’s (BoE) 2.0% target, and Services inflation – which thus far has remained particularly high – fell to 5.2% in July from 5.7% previously, working its way back to a long-run average of around 3.5%. 

UK Retail Sales data last week showed a rebound in July of 0.5% from a negative 0.9% in June. The Unemployment Rate fell to 4.2% in Q2 from 4.4% in Q1, and Gross Domestic Product (GDP) rose 0.9% from 0.3% over the same period.