The IMF warned that growth across the US, China, and the Eurozone was showing signs of stalling.Įxpectations that the Fed would be hiking interest rates by 0.75% on Wednesday may have also underpinned USD. The retreat to risk appetite came as the International Monetary Fund (IMF) raised its inflation forecasts and cut growth forecasts for 2022. Increased fears of an imminent global recession likely increased bets on the safe-haven ‘Greenback’. The currency may have seen few significant bets due to the meeting, however. The gains came as the Federal Open Market Committee began their two day meeting ahead of the central bank’s interest rate decision. The US Dollar (USD) firmed amid a risk-off market mood on Tuesday. US Dollar (USD) Exchange Rates Gain ahead of Fed Interest Rate Decision A survey by Reuters found that 90% of economists expect the central bank to push ahead with the latter. Expectations are split between a 0.25% or 0.5% rate hike from the BoE at their next meeting.

Mixed hopes for future interest rate hikes from the Bank of England (BoE) may have also weighed on Sterling. The Conservative leadership race continued between remaining candidates Rishi Sunak and Liz Truss. Political uncertainty also likely contributed to the Pound’s falls on Tuesday. Today saw Marmite maker Unilever raise prices by 11% amid soaring inflation. The pressures on the sector have seen rising costs for producers. ‘Retail activity continues to take a hit as consumers struggle to cope with the effects of the cost-of-living crisis.’ The UK’s cost-of-living squeeze has continued to hit household budgets and limit unnecessary spending. According to CBI distributive trades figures, July’s retail sales balance fell to -4 with expectations of a drastic fall to -14 in August. The Pound slipped against its rivals on Tuesday after figures indicated a poor performance for the UK’s retail sector in July. Pound (GBP) Exchange Rates Slump as Retail Sector Struggles Additionally, a risk-off market mood could have prompted losses for GBP/USD.Īt time of writing the GBP/USD exchange rate is at around $1.2004, which is down roughly -0.4% from this morning’s opening figures. Bets on an imminent 0.75% rate hike from the Federal Reserve may have also pushed the currency pair lower.

The Pound US Dollar (GBP/USD) exchange rate slipped on Tuesday as figures indicated a downturn in the UK’s retail sector.

U s currency rates