UK retail sales rise in July while inflation remains a key concern
|Retail sales volumes rose by 0.3% in July 2022 following a fall of 0.2% in June 2022 while in the three months to July 2022, sales volumes fell by 1.2% when compared with the previous three months, continuing the downward trend since summer 2021. The pound continues to struggle as GBPUSD dropped below 1.20 and has been unable to recover while the FTSE100 is starting the last trading session of the week lower and with an attempt to rebound after recently pulling back. The overall situation remains quite challenging in the economy as rising costs, inflationary pressures and supply issues continue to weigh on consumers, who have continued to lose confidence as they hope the Bank of England and government will manage to combat the underlying factors causing these issues.
Bitcoin drops over 4% and approaches $21,000 once again
Despite a brief rebound which saw the main cryptocurrency reach a high of almost $25,000, once again giving hope to investors who have been awaiting a catalyst for a larger recovery after months of negative performance. The price of bitcoin fell over 4% in the first few hours of today’s session and reached the lowest level in almost a month after it was unable to hold onto gains seen after recent US data painted a slightly better picture of the overall economic situation and indicated the possibility of a smaller than expected rate increase from the FED. However, bond yields remain resilient and have managed to continue rising while recent FED minutes and comments appeared to hint at the possibility of a continuation of the central bank’s strategy which has been prioritizing tackling inflation, a move which may cause some noticeable volatility in both the crypto space and other markets. One thing is for sure, crypto investors are increasingly anxious about the sustainability of a relief rally and this most recent pullback could shake their confidence once again despite some encouraging signs earlier.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.