The British pound traded just below $1.30, pulling back from a recent four-month high, after the Bank of England kept its benchmark interest rate at 4.5% and signaled a measured and gradual approach to easing monetary policy.
UK pound hovers around $1.30 on Friday
While inflation has eased notably in recent months, uncertainty surrounding global trade policy has intensified following the US announcement of new tariffs, prompting retaliatory measures from some governments and raising concerns about renewed price pressures.
At the same time, economic data continued to highlight signs of slowing growth, as Prime Minister Keir Starmer faces mounting challenges in rebuilding confidence among consumers and businesses.
Macro data impact on forex market
Investors also assessed the latest labor market figures, which showed that the unemployment rate remained steady at 4.4%, while wage growth slowed slightly to 5.8%, aligning with expectations. Meanwhile, across the Atlantic, the Federal Reserve left interest rates unchanged but reiterated its outlook for two rate cuts later this year, further shaping market sentiment.
