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24/04/26
19
GBP/USD Holds Near 1.3470 as UK Sales Data Supports Pound
GBP/USD was little changed around 1.3470 in Asian trading on Friday, pausing after three straight sessions of losses. The pair found some support from stronger-than-expected UK retail sales data, but broader market sentiment remained dominated by demand for the US Dollar.
UK retail sales rebounded 0.7% month over month in March, recovering from a revised 0.6% decline in February and exceeding expectations for a 0.1% increase. On an annual basis, sales rose 1.7%, slightly below the prior reading but ahead of forecasts. Core retail sales, which exclude auto fuel, also improved, climbing 0.2% after a revised 0.6% drop in the previous month.
The data pointed to a modest improvement in consumer spending at the end of the first quarter, though not enough to shift the broader market view on the pound. Investors continue to assess whether the recovery in household demand can be sustained as higher borrowing costs and persistent cost pressures weigh on activity.
At the same time, the US Dollar retained a firm tone as traders favored safe-haven assets amid uncertainty over the US–Iran conflict. Reports indicated that Lebanon is seeking to extend the current ceasefire with Israel by one month, while Israeli officials have signaled that the outcome remains uncertain. The lack of clarity around the negotiations has kept geopolitical risk elevated.
Tensions in the region have also been reinforced by maritime developments. US forces intercepted two Iranian oil supertankers that were reportedly trying to evade restrictions, while Tehran has continued to issue threats to vessels passing through the Strait of Hormuz. American military planners are said to be preparing for further contingencies if the situation deteriorates.
For now, the pound is being supported by firmer domestic data, but that effect is being offset by a stronger dollar and cautious risk appetite. Unless geopolitical tensions ease or US demand for safe assets fades, GBP/USD may remain under pressure in the near term.
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