Pound Steady as Dollar Strength Continues Amid Rising Energy Prices

The pound sterling has remained steady against the US dollar on Friday, while the euro is under pressure due to rising energy prices and expectations of Fed tightening. According to ING's Chris Turner, the dollar continues to perform well as high energy prices raise expectations for a central bank response.

The Fed has not provided explicit guidance beyond signaling a need to 'restore credibility' on inflation. Markets do not expect a hike at next week's meeting, and US data flow is light on Friday with flash S&P PMIs and new home sales being the main releases.

Despite some support from UK retail sales rising 1.0% in June, sterling's resilience is not driven by domestic developments. The euro remains under pressure due to widening real rate differentials rather than ECB policy itself.