British Pound hits three-month high amid weak US economic data

The British Pound rose approximately 0.40% on Friday, reaching a three-month high against the US Dollar. This movement follows weak economic data from the United States, which has increased expectations that the Federal Reserve may maintain current interest rates.

US retail sales for July declined by 0.6% month-on-month, missing forecasts for a 0.1% increase. Additionally, the University of Michigan's preliminary consumer sentiment index fell to 51 in August from 55.2 in July, as households expressed concerns regarding elevated prices. These indicators have led money markets to price in a 70% probability that the Fed will hold rates unchanged.

In the United Kingdom, recent GDP figures showed the economy expanded by 0.3% in June, representing the strongest growth among G7 developed nations. Market attention is now shifting toward upcoming UK inflation, employment, and retail sales data.