The British Pound declines for a second day as narrowing UK-US yield spreads and USD strength pressure the pair near 1.3450.
GBP/USD extends losses for a second consecutive session, trading around 1.3450 in Asian hours on Friday. The decline follows a narrowing gap between UK and US yields, which reduces the Pound’s relative appeal amid broader US Dollar strength.
The pair’s drop contrasts with recent sessions where political stability in the UK provided some support. Earlier this week, GBP/USD hovered near 1.3500, but persistent USD demand has eroded those gains. Market focus remains on yield differentials and risk sentiment.
No immediate market reaction data was reported, but the trend reflects shifting expectations around monetary policy divergence between the Federal Reserve and the Bank of England.