24.07.202608:51:15UTC+00Pound Holds Near July Low on Dollar Strength

The pound hovered around $1.33, close to its weakest level since July 1, as investors weighed a stronger-than-expected run of UK data against a firm US dollar, supported by escalating Middle East tensions and new US tariff actions. UK retail sales rose 1% in June, defying forecasts of a 0.3% decline, buoyed by warmer weather and higher spending during the football World Cup. Consumer confidence climbed to a six-month high in July, while the Bank of England’s Decision Maker Panel survey pointed to easing inflation expectations. At the same time, the S&P Global PMI showed that UK business activity returned to growth, beating analyst projections. On trade, the US announced new tariffs of 10% to 12.5% on dozens of countries, including the UK and the EU. The UK government said the measures would not harm British businesses, noting that the existing UK–US trade agreement remains in force and continues to offer improved terms on certain exports, such as whisky and medical technology.