Sterling faces challenges ahead of UK retail sales

The GBPUSD currency pair is retracing its recent gains, hovering around 1.3290 in Friday’s Asian markets.

The Pound Sterling faces challenges as GfK Consumer Confidence in the UK, slipped to -23 in April — its lowest level since November 2023 — amid rising living costs and growing global trade concerns, missing forecasts of -22.

Traders now await the UK Retail Sales data and the final reading of US Michigan Consumer Sentiment later on Friday.

GBPUSD depreciates as the dollar strengthens, bolstered by a Bloomberg report suggesting China may suspend its 125% tariff on select US imports, including medical equipment, ethane and aircraft leasing.

Sources noted that officials are particularly evaluating a waiver on tariffs for plane leases. China’s Ministry of Finance and the General Administration of Customs have yet to comment.

Further supporting the greenback is optimism surrounding US trade negotiations. Reuters reports progress in preliminary talks with key Asian allies, including South Korea and Japan.

The DXY Dollar Index, which tracks the USD against six major currencies, is recovering previous losses, trading near 99.80. However, the greenback faced headwinds following mixed labour data.

The US Department of Labor suggested Initial Jobless Claims rose to 222,000 for the week ending April 19 — slightly above expectations — while Continuing Claims declined by 37,000 to 1.841 mln for the week ending April 12.

(Source: OANDA)