Forex
Pound Holds Gains Near 1.3650 as UK Retail Sales Loom
The British Pound is trading near 1.3650 against the US Dollar in early European session on Friday, ahead of the release of UK Retail Sales data for December.
Market participants are cautious about potential volatility around the data print, but a generally softer US Dollar has provided support to the GBP/USD pair.
The UK's economic outlook remains mixed, with the Bank of England expected to maintain its restrictive stance in the near term. Recent US economic data suggested cooling inflation and a potential pause in the Federal Reserve's rate hike cycle.