The Pound to Dollar exchange rate's advance has paused just short of the 1.30 barrier. Upcoming U.S. retail sales and UK inflation figures will determine whether a deeper pullback now emerges.
Pound Sterling has risen to its highest level in a year against the Dollar after last week's 1.35% gain. But, the rally leaves it technically overbought in the near term and exposed to weakness if this week's inflation and wage figures undershoot expectations.
The Dollar fell notably after the U.S. reported that inflation shrunk last month, indicating the likelihood of an interest rate cut in September.
The Pound to Dollar exchange rate's rally has failed again after colliding with a notorious technical barrier and Jerome Powell's sober assessment of the prospect of interest rate cuts.