Sterling falls below 1.3 against dollar for first time in ten months

Sterling tumbled to September 5 lows against the dollar, following earlier data from Britain and the US, and the conclusion of Federal Reserve Chair Jerome Powell's Congressional testimony yesterday.

As of 03:52 GMT, GBP/USD fell 0.64% to 1.2986 from the opening of 1.3069, with an intraday high at 1.3083, and a ten-month low at 1.2958. 

Earlier UK data showed retail sales fell 0.5% in June, compared to a 1.4% rise in May, while analysts expected a 0.1% increase, while Brexit minister Dominic Raab said a contingency plan to prepare for the not reaching a Brexit deal with the EU will be released the soon to ensure that local banks will withstand the consequences. 

Stellar US Employment Data 

Earlier US data showed unemployment claims fell 8 thousand to 207 thousand from 215K, beating expectations of 220K, while continuing claims for the week ending July 7 rose 8 thousand to 1.751 million from 1.743 million, missing estimates of 1.729 million. 

The Philly Fed Manufacturing Index rose to 25.7 in July from 19.9 in June, beating estimates of 21.6, while the CB leading index rose 0.5% in June, beating estimates of 0.4%, and compared to May's no-change. 

White house trade councilor Peter Navarro asserted in earlier remarks that President Donald Trump's decisions are not destructive as some are painting it, noting that China is the only country hurting the US economy, while the US administration believes in free trade in a world that lacks it. 

In his two-day testimony before the two chambers of Congress, Fed Chair Jerome Powell pointed to strong economic growth this year with continued improvement in the labor market and inflation rates, while cautioning from short-term consequences to trade protectionism.