Pound Loses Ground as Us Dollar Soars

The Pound lost some of its momentum on Friday as UK retail sales experienced a drop during May.

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This saw sales plummet to 1.4% instead of reaching 1.6% as experts had expected. This placed increased pressure on the currency. This saw the Pound finish the day at 1.1634 against the Euro and 1.3801 against the US Dollar according to the Foreign Exchange Market.

On Friday, the Euro nudged higher after current account figures from the Eurozone showed a surplus of €31.4bn in April which came in higher than the expected €18.5bn that was forecast. Pressure was eased on the single currency after US Treasury yields took a dip which was welcomed after the single currency had suffered from its negative correlation with a strong US Dollar. 

The US Dollar combined all of its gains on Friday following its growth earlier in the week after the Federal Reserve gave an aggressive outlook. In the currency market, the US Dollar continued to remain dominant, regardless of US Treasury yields dropping as the session moved forward. It’s likely that the US Dollar will continue its upward momentum today but that is dependent on the Fed’s hawkish bias.

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