Ella 
The GBP/USD extended losses for the second day in a row during Wednesday’s Asian trading session, falling to around 1.2160. Better U.S. economic data weighed on the GBP/USD.
Data released by the U.S. Bureau of Economic Analysis (BEA) showed that retail sales in September beat expectations by 0.3%, rising to 0.7%. In addition, retail sales in the control group rose by a much stronger 0.6% compared to the previous reading of 0.2%.
The strong performance underscores the resilience of the US consumer. Later, the Fed reported that industrial production rose 0.3% versus expectations for a flat 0.0%.
The U.S. Dollar Index (DXY) is trying to recover from earlier losses and is trading higher at 106.28 at the time of writing. U.S. Treasury yields also rose, with the yield on the 10-year Treasury note hitting 4.83%.
Richmond Fed President Thomas Barkin noted that current policy is already seen as remaining restrictive. Barkin expressed uncertainty about the Federal Reserve’s upcoming policy meeting in November and stressed that the Fed cannot rely solely on rising longer-term bond yields to tighten monetary policy.
The cautious sentiment expressed by many Federal Reserve officials indicates that the Federal Reserve is maintaining a cautious stance on monetary policy, suggesting that the Federal Reserve is reluctant to tighten monetary policy in the current economic environment.
Mild wage data from the U.K. could put downward pressure on the Pound, which would put pressure on the GBP/USD pair.
The three-month average annual wage rate (%) excluding bonuses in the UK remained stable at 7.8% in August, in line with expectations. However, the three-month average annual wage rate including bonuses in the U.K. fell to 8.1% in August, compared to expectations of 8.3%.
