The US Dollar (USD) regained lost ground on Tuesday. ‘Cutbacks to new residential building projects in response to rising interest rates and subdued housing market conditions resulted in the sharpest drop in housing activity for three years.’ US Dollar (USD) Exchange Rates Lifted by Retreat in Risk Appetite Tim Moore, economics director at survey company S&P Global, said:
Whilst May’s construction PMI printed in positive territory of 51.6, the survey showed that house building fell at its fastest pace since May 2020.
‘The wild card for the retail sector remains uncontrollable food inflation, which shows little sign of coming down in the near future, and this is having a significant knock-on effect on non-essential spending.’Įvidence of a drop in UK house building also dented confidence in the Pound on Tuesday. Speaking on the reasons behind the figures, KPMG’s UK head of retail Paul Martin said: The BRC’s retail sales monitor fell to 3.7% which was its lowest reading since October 2022.
Signs of a slowdown in the UK’s retail and housing sectors weighed on Sterling.ĭata collected by the British Retail Consortium (BRC) outlined a greater-than-forecast drop in retail sales growth in May. Pound (GBP) Exchange Rates Drift Lower amid Signs of Retail and Housing Slowdown Signs of waning confidence in the US economy also prevented a deeper downturn in the exchange rate.Īt time of writing the GBP/USD exchange rate was at around $1.2410, which was down roughly 0.2% from that morning’s opening figures. On the other hand, more drastic losses were limited as USD was weighed by market bets on a pause in policy tightening from the Federal Reserve. The Pound to US Dollar (GBP/USD) exchange rate slipped on Tuesday after a negative risk tone pulled the Sterling lower alongside a slowdown in the UK retail and housing sectors.
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