Pound Holds Firm as Dollar Rebounds

The British Pound held firm against the US Dollar as the Greenback rebounded from Thursday's intervention day. The Pound Sterling retreated by just 0.02% on Friday, while the GBP/USD traded at 1.3458.

Improved US sentiment and a stronger Consumer Sentiment index contributed to the Dollar's recovery. The University of Michigan reported that Consumer Sentiment improved from 54.4 to 55.2 in July, with inflation expectations remaining unchanged at 4.2% for one year and 3.3% for five years.

However, the Federal Reserve's preferred inflation gauge, the Core PCE, fell by 0.1% in June. The three Fed dissenters who voted for a rate hike expressed their concerns about inflation and monetary policy. Dallas Fed Lorie Logan said that inflation risk is tilted upward, while Beth Hammack of the Cleveland Fed stated that the policy rate is not restrictive enough.