Pound Pauses Decline as Dollar Takes Breather

The British pound trimmed its weekly losses against the US dollar on Friday as the greenback took a breather. The GBP/USD pair rose by more than 0.18% to trade at 1.3243, recovering from an intraday low of 1.3209.

This rebound came despite rising energy prices linked to the Middle East conflict and firmer expectations for hawkish Federal Reserve policy through the rest of 2026.

The pound remained cautious against major peers and was only marginally higher near 1.3220 in the European session, still close to an almost three-month low around 1.3200.

For the week, sterling was down 1.27% versus the dollar.