GBP/USD retreats towards 1.1900 on mixed UK Retail Sales. Economists at ING note that the British pound remains vulnerable.

Retail challenges

“Consumer confidence in the UK has fallen to a record low. At least July retail sales brought a glimmer of hope. But it is still not helping to change the cost-of-living crisis narrative. It looks unlikely to dent expectations that the Bank of England will be hiking 50 bps on 15 September.”

“It is fair to say sterling remains fragile. However, it looks more vulnerable versus the dollar, where GBP/USD can trade down to the 1.1935/50 area.”