GBP/USD falls on global economic growth woes

Due to worries about both the Chinese economic recovery and the expansion of the global economy, the GBP/USD decreased by 0.36%, remaining below the 1.2800 mark. The US dollar (USD) has been a steadfast advocate for rate stability, despite Michelle Bowman of the Fed’s push for additional rate increases.

Negative Chinese economic data and UK retail sales figures have put pressure on the GBP/USD, driving the exchange rate down. With exports increasing by $247.5 billion and imports falling to $313 billion, the US trade imbalance decreased in June. The US dollar is up 0.52% according to the US Dollar Index, while the US 10-year benchmark note rate is at 4.022%.

The GBP/USD hasn’t fallen any lower due to remarks made by Fed speakers as a more neutral position is taken. Patrick Harer of the Fed asserted that the Fed can keep interest rates stable, while Raphael Bostic, president of the Atlanta Fed, indicated that no further hikes are required.

The release of July inflation data will be on the US economic calendar, while an improvement in the UK GDP for Q2 and June is anticipated. A “bearish-engulfing” bearish reversal pattern on the GBP/USD daily chart suggests further fall.