GBP/USD holds above 1.2550 positive level on weak US Retail Sales data
The GBP/USD pair traded with modest gains near 1.2585 level during the early Asian session on Monday (February 17). The major currency pair moved higher amid upbeat UK Gross Domestic Product (GDP) report and weak US Retail Sales data. US markets will be closed on Monday in observance of Presidents Day.
US Retail Sales posted their biggest drop in nearly two years, dragging the greenback down. Retail Sales fell 0.9% in January after an upwardly revised 0.7% increase in December, the Commerce Department’s Census Bureau reported on Friday. The reading was lower than the estimate for a 0.1% decline. On a yearly basis, Retail Sales increased 4.2% during the same reporting period.
The better-than-expected UK GDP provided some support to the Pound Sterling (GBP). The UK economy grew by 0.1% QoQ in the fourth quarter (Q4) of 2024, beating expectations, the Office for National Statistics (ONS) said on Thursday.
Traders will be looking closely at UK labour market data and Consumer Price Index (CPI) inflation data, due on Tuesday and Wednesday respectively. These reports could provide some clues as to whether the Bank of England (BoE) will cut interest rates again at its March meeting.
Source: FXStreet
