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GBP/USD gets clumped into the US close on Friday as UK yields slip

On Friday afternoon the Pound came under pressure across the board. Perhaps the most notable mover was the GBP/USD, which fell back underneath 1.24 again. Much earlier in the day, the Pound had recovered from an Asian session low at 1.2389. That saw it later peak at 1.2467. The move higher came as the dollar fell back and seemed to ignore some really tepid UK retail sales data. However, as the US currency later rebounded again into the 4pm London fix, the Pound gave all those earlier gains back and more. The GBP/USD fell below that 1.2389 Asian low after the European close. An extension led to a low at 1.2367 and it later ended the week at 1.2370. That was the lowest daily close for the GBP/USD since November last year. A major driver for that move, beyond the dollar, was a move higher in the EUR/GBP, which will be covered in the very next headline. This all seemed to stem of BOE comments (Ramsden) regarding the outlook for UK inflation and interest rate policy.  That shunted UK yields lower later on Friday, at the same time as US equivalents remained near their highs. There will be an update on the GBP/USD and its more immediate price action today a little later on. It is trading right now at 1.2385
 

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