GBP/USD remains under pressure on firmer US dollar

GBP/USD is down some 0.17% on the day as the greenback makes back some ground following a dismal performance at the end of last week's trade.

Cable is trading at 1.3841 after falling from a high of 1.3878 to a low of 1.3827.

Risk appetite in global markets is weak at the start of the week following poor Chinese data and the US.

Data on Friday showed a plunge in US consumer confidence. The survey showed US consumer sentiment dropped sharply in early August to its lowest level in a decade. 

The fall was one of the six largest drops in the past 50 years of the survey and it underlines a broader concern at economic growth as virus cases rise around the world.

Meanwhile, a sharp slowdown in China's factory output and Retail Sales growth suggested to the market the world is a long way off from recovering from the coronavirus economic slowdown.

As a consequence, the US dollar has edged higher and the riskier currencies, such as GBP, generally lost out.

Bullish sentiment on GBP has gotten somewhat thinner of late as traders ponder as to whether the Bank of England’s optimistic outlook given the recent virus wave will be sustainable. 

Investors, in this respect, will be very keen to scam this weeks calendar for domestic clues that could offer some clarity on the matter.

First up, July’s jobs data on Tuesday may see a tick lower in the Unemployment Rate as a supportive factor for the pound as the economy opens up. 

Then, inflation data on Wednesday will be important and the focus will be on the headline CPI YoY outcome. 

Finally, Retail Sales for July will be eyed for signs that the delta variant took its toll on the economy.

Meanwhile, the US dollar has firmed ahead of the Federal Open Market Committee Minutes this Wednesday that will be scanned for signs as to when the Fed might contemplate tapering its bond purchases.