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Customers use the automated teller machines outside a HSBC bank in central London, England, on August 4, 2020.
Ray Tang/Xinhua/Zuma Press
The pound on Tuesday continued to ward off negative news at home, rising in the face of data showing the U.K. retail sector struggling.
The Confederation of British Industry’s distributive trade survey fell into negative territory in August, with a -6% reading after a +4% showing in July.
“The latest survey shows that trading conditions for the retail sector remain tough, even against the backdrop of business slowly returning. Firms will be wary of deteriorating household incomes and the risk of further local lockdowns potentially hitting them in the pocket for a second time,” said Alpesh Paleja, the lead economist. Economists had expected a +8% reading.
The pound GBPUSD, +0.56%, up over 6% over the last 3 months even amid difficult negotiations between the U.K. and European Union over post-Brexit trade arrangements and the worst gross domestic product reading of major industrialized nations in the second quarter, traded at $1.3130 vs. $1.3063 on Monday.
A number of currencies have climbed against the U.S. dollar, amid the Federal Reserve’s aggressive action to bolster the world’s top economy. Fed Chairman Jerome Powell is due to outline the central bank’s new stance on inflation this week.
The FTSE 100 UKX, +0.08%, meanwhile, edged up 0.3%, getting a boost from positive comments in the U.S. and China on trade talks.
Aveva Group AVV, +5.49% was the top FTSE 100 riser, up over 5% after announcing the $5 billion acquisition of OSIsoft for $5 billion, to be funded by selling $3.5 billion in discounted shares, or a rights issue. Aveva had said in early August that it was in talks to buy OSIsoft.
The hot housing sector took a breather, with builders Persimmon PSN, -0.85% and Barratt Developments BDEV, -1.33% lower.
