Traders await UK Q1 2026 GDP data and US-China tariff reduction talks amid geopolitical tensions and US inflation pressures.
The British Pound holds near 1.3520 against the US Dollar in Asian trading, recovering from three consecutive days of losses. Investors are focused on preliminary UK GDP figures for Q1 2026, alongside Industrial and Manufacturing Production data, due later today.
Market caution persists as traders monitor developments from the Trump-Xi meeting in Beijing, where discussions include a potential framework to cut tariffs on $30 billion worth of goods. The US Dollar remains firm amid elevated wholesale inflation, with April’s Producer Price Index surging to 6.0% year-over-year, exceeding expectations.
Geopolitical risks also weigh on sentiment, as the US intensifies pressure on Iran with new sanctions targeting oil sales to China. Attention will later shift to US April Retail Sales data for further market direction.