British Pound: Mixed data but Sterling supported – BBH

Brown Brothers Harriman's Elias Haddad suggests that the British Pound (GBP) is stronger due to a broader weakness in the US Dollar (USD), even though UK economic data was mixed. July retail sales declined slightly, reversing prior strong gains, while August's Purchasing Managers' Index (PMI) beat expectations with a four-month high composite reading.

However, Haddad feels that market pricing of 50 basis points Bank of England (BoE) hikes over twelve months is too aggressive, despite the UK's growth-inflation balance still supporting the Pound.