GBP/USD drifts lower to near 1.3310 in Friday’s early Asian session, down 0.21% on the day.
The UK Finance Minister said she was confident Britain could reach a trade deal with the US.
UK March Retail Sales report will take center stage later on Friday.
The GBP/USD pair attracts some sellers to around 1.3310 during the early Asian session on Friday, pressured by the renewed US Dollar (USD) demand. The UK Retail Sales data for March will be the highlight later on Friday.
The Greenback edges higher amid the optimism about a US trade deal announcement, which acts as a headwind for the major pair for the time being. UK Finance Minister Rachel Reeves said on Thursday she was confident Britain could reach a trade deal with the US.
Reeves is scheduled to meet US Treasury Secretary Scott Bessent on Friday. High on the agenda will be a possible trade deal, which Britain hopes will reduce the hit from Trump's import tariffs to its exporters of goods, including cars and steel. Investors await further developments in the US-UK trade talks.
The gloomy UK economic outlook and rising bets of further rate cuts by the Bank of England (BoE) could drag the Pound Sterling (GBP) lower. The International Monetary Fund (IMF) anticipated three interest rate cuts by the BoE and has revised UK Gross Domestic Product (GDP) growth for 2025 to 1.1% from 1.6% forecast earlier.
The UK Retail Sales data for March will be closely watched on Friday. The figure is expected to decline by 0.4% MoM in March after rising by 1% in February. In case of a stronger-than-expected outcome, this might help limit the GBP’s losses in the near term.
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