FX round-up: Sterling dips as market looks to Yellen's Friday soapbox

Sterling lost some of its attitude against main rivals on Thursday, but remains overall ahead for the week and ahead of US Federal Reserve chair Janet Yellen's Jackson Hole soapbox on Friday.

Shortly after 17:00 BST, sterling was down 0.36% to $1.3184, and down 0.48% to €1.1691. The dollar spot index was flat at $94.787. Gold was off 0.33% at $1325.3 an ounce.

SwissQuote noted that hourly resistance for sterling was at $1.3372, with hourly support at $1.3024.

"The long-term technical pattern is even more negative since the Brexit vote has paved the way for further decline," it said in a research note.

Sterling was also lower against the currencies of Canada, Australia, New Zealand and Japan.

But it, along with the dollar, eked out minor gains on South Africa's rand, which has dived in recent sessions on concerns about the future tenure of finance minister Pravin Gordhan who faces potential arrest and charges.

Gordhan has apparently defied a police request to present himself to them for a warning statement in relation to an alleged covert unit at the country's Revenue Service, and alleged espionage.

Meantime, HL Currency Service senior analyst Chris Saint said Thursday's economic data had a muted impact on sterling.

"British retailers' sales were stronger than anticipated in August according to survey results from the Confederation of British Industry," he said.

"Focus now switches to Fed Chair Janet Yellen's speech tomorrow as markets seek clarification on the US interest-rate policy outlook," Saint said in a statement.

Elsewhere, the dollar lost traction against the euro, but fashioned modest gains on the loonie, aussie, kiwi, rand and yen.

"The euro shrugged off disappointing business survey data to trade higher against the dollar and the British pound," said Jasper Lawler, market analyst at CMC Markets.

He doubted the disappointing German business confidence data from Ifo would spur the European Central Bank into fiscal action at its September meeting.

Lawler also added the greenback had remained within a range of last Friday's lows and Monday's high ahead of Yellen's Friday soapbox, which followed comments from other Fed officials.

"Precious metals have fallen in the lead up to Jackson Hole on the risk that Janet Yellen reaffirms hawkish statements recently made by other Fed members, including Ester George on Thursday."