GBP/USD rebounds near 1.3325 as traders await June UK Retail Sales data, which may influence BoE rate expectations.
The GBP/USD pair climbed to 1.3325 during Asian trading on Friday, ending a five-day losing streak. The recovery comes as markets await UK Retail Sales data for June, expected to show a 0.3% month-on-month decline after a 1.2% rise in May.
Traders are pricing in a steady Bank of England (BoE) benchmark rate of 3.75% next week, with one or two quarter-point hikes still anticipated by late 2026. A stronger-than-expected retail sales print could reinforce expectations for further BoE tightening.
Geopolitical tensions in the Middle East, including US strikes on Iranian targets, may limit the pound’s upside as the USD benefits from safe-haven demand.