GBP Edges Higher to Near 1.3650 Amid Fading Fed Rate Hike Expectations

The British Pound edged higher to near 1.3650 on Friday, with traders awaiting UK Retail Sales data for July.

This comes as the US Dollar softened against the British Pound amid fading Federal Reserve rate hike expectations.

The Fed's Charu Chanana noted that higher Treasury yields do not necessarily underpin the USD if investors believe the increase reflects fiscal risk or persistent inflation rather than stronger US growth or tighter monetary policy.

Economists project a 0.5% decline in Retail Sales for July, which could drag the Cable lower in the near term if it's weaker than expected.