Investor optimism over a potential US-Iran peace deal offsets softer UK GDP and industrial output figures, supporting the pound.
The British pound (GBP) remains moderately higher against the US dollar (USD) on Friday, trading near the 200-day simple moving average at 1.3415. The currency’s resilience follows comments from US President Donald Trump suggesting a breakthrough in US-Iran negotiations, which may lead to a peace agreement soon. Iran’s government has acknowledged progress but with less enthusiasm.
Earlier, UK data showed the economy contracted 0.1% in April, missing expectations after a 0.3% gain in March. Industrial production stalled, defying forecasts of a 0.1% rise, while manufacturing output grew 0.4%, beating estimates of a 0.2% decline. In the US, Thursday’s Producer Price Index (PPI) data revealed factory-gate prices surged 6.5% year-on-year, the fastest pace in over three years, though core PPI held steady at 4.9%, easing concerns over broader inflation pressures.