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Sterling rises as investors await August sales data

Credit: REUTERS/Sukree Sukplang

Sterling rose slightly on Tuesday as the dollar slipped and investors waited for Britain's August retail sales data that analysts say could lift the pound further.

Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, Aug 25 (Reuters) - Sterling rose slightly on Tuesday as the dollar slipped and investors waited for Britain's August retail sales data that analysts say could lift the pound further.

The dollar fell after investors returned to riskier currencies as a successful phone call between top trade officials in the United States and China boosted positive sentiment.

Sterling was last up 0.18% at $1.3089 versus the greenback GBP=D3. It was up 0.14% at 90.36 pence versus the euro EURGBP=D3.

The Confederation of British Industry’s (CBI) monthly retail sales numbers for August are expected later on Tuesday and could lead to a "temporary boost" for the pound, ING analysts said.

International central bankers, Federal Reserve officials, academics and some private sector analysts will meet virtually on Thursday and Friday because of the COVID-19 pandemic instead of in the mountain resort of Jackson Hole, Wyoming.

"The whole approach has been mostly wait and see ahead of the Jackson Hole symposium," said Francesco Pesole, FX strategist at ING.

Sterling still has to grapple with ongoing Brexit negotiations between Britain and the European Union, which are far from reaching a consensus.

Public debt also rose above 2 trillion pounds ($2.65 trillion) for the first time last month as the coronavirus pandemic prompted the government to ramp up public spending.

(Reporting by Maiya Keidan; Editing by Kirsten Donovan)

((Maiya.Keidan@thomsonreuters.com; 44 207 542 1594; Reuters Messaging: maiya.keidan.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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