GBP/USD slipping back as Sterling loses steam

The GBP/USD has fallen by nearly eight-tenths of a percent on Monday, as investors retreated into safe havens due to a global slowdown.

The Pound Sterling has shed three-quarters of a percent against the US Dollar, while the rest of the FX market is facing a risk-off bid from the US Dollar.

The week’s economic calendar is light, with little to report on the US economy. The US Dollar is expected to drive market reactions to data, culminating in the US Nonfarm Payrolls report on Friday.

US Factory Orders in October declined more than expected, and September’s manufactured goods purchases saw a downside revision. This has led investors to pull back into safe havens, as a global recession is bad for business.

The Sterling will have another chance at redemption when the UK’s BRC Life-For-Like Retail Sales for the year into November prints early Tuesday, with markets expecting a tick down in UK comparative retail sales.

The GBP/USD has seen fresh selling pressure on Monday against the GBP/USD, with the GBP/USD opening up the trading week slipping from early bids near 1.2720 back down towards 1.2600.