Investing.com - The pound was down against most major currencies on Tuesday following retail sales monitor data that showed slower growth in UK sales in July.
Sterling held firm above the $1.30 mark, at 10:00 GMT, GBP/USD was 1.3032.
The British Retail Consortium, a retail sales monitor, reported that UK retail sales in July grew by 0.9%. While better than the 0.6% forecast, it was a slower pace than the 1.2% growth for June.
According to the BRC, there had been a 2.3% growth in food sales in the three months to July, a growth mainly driven by rising food prices. Non-food item sales decreased by 0.7 percent.
The BRC data chimes with a study released by Visa on Monday, which showed consumer spending in July was at its slowest pace for four years. July saw the fourth consecutive month of a decline in spending, at 0.8% in real terms.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was 93.20, down 0.11% from the previous close.
The dollar remained supported by Friday’s strong labour market data. The greenback jumped as the jobs report fuelled expectations that the Federal Reserve will increase interest rates for a third time this year as planned.
However, investors will be looking at the inflation data released on Friday to determine if a rate hike looks likely.
News surrounding the 'divorce bill', the amount of money the UK will have to pay in order to leave the European Union, has reignited following a report in the Sunday Telegraph.
The leading Conservative party looks under strain as several ministers hold contradicting views on several key Brexit issues. Investors will be looking to the Conservative Party conference in October for wind of a leadership challenge.
The euro continued to make gains against the pound despite disappointing trade data from Germany on both Monday and Tuesday. German exports fell by 2.8% in June, while imports dropped by 4.5%. German industrial production was reported to be -1.1%.
EUR/GBP edged up 0.14% to 0.9063. The single currency was steady at its ten-month high.
The pound was weaker against commodity currencies. GBP/CAD was down 0.16% at .6501, while GBP/AUD slipped 0.21% to 1.6439.
Ahead of the Reserve Bank of New Zealand monetary policy statement on Thursday morning, GBP/NZD was flat ar 1.7702.
Tensions in the Korean peninsula have been headline news, and as such the pound fell against the safe haven Japanese yen. GBP/JPY was 144.03, down 0.22% on the previous close.
GBP/CHF was down slightly at 1.2681.
Investors will be watching UK industrial data for July released on Thursday, the first big data release following last Thursday’s Bank of England Monetary Policy Committee meeting which saw growth forecasts slashed. .