Soft UK Retail Sales pressures GBPUSD.........>

FOREX: Soft UK Retail Sales pressures GBPUSD through 1.30

- USD was the standout in Europe with modest gains seen across the board.

- GBPUSD failed to bounce ahead of UK Retail Sales, despite displaying oversold

conditions with bullish divergence on the 14-day RSI. The release of soft

headline and components pressured through $1.3000, accelerating the move to

fresh 10-month lows of $1.2983. GBPUSD sits bottom of the G10 pile this week

with losses of 1.87%, MNI's PINCH model ticked lower to 78% for an August hike.

EURGBP comfortably holds above Gbp0.8900, last Gbp0.8926.

- The stronger USD theme pressured EURUSD to $1.1604, the pair also displayed

bullish divergence but has so far failed to make a recovery. USDJPY briefly made

a show above Y113.00, but lacked follow through.

- AUD pared post Aussie jobs data gains with a reversal from $0.7441 to $0.7352.

NZD eased lower on the move to $0.6744.

- DXY squeezed to 95.42 and is seen approaching the 95.50/55 resistance area

(YTD high), while gold printed 12-mth lows of $1217.61 and continues heavy.

- Main highlights in the US from Jobless Claims & Phila Fed Index at 1230GMT.