Pound Steady as Softening US Inflation Outlook Limits Dollar Recovery
The British Pound held steady against the US Dollar on Friday, trading around 1.3458 as the Greenback attempted to recover from a sharp decline earlier in the week.
Although the US Dollar regained some ground after Thursday's heavy selling, it remained on track for its weakest weekly performance since early April, reflecting reduced expectations for aggressive Federal Reserve tightening.
The University of Michigan's Consumer Sentiment Index improved to 55.2 in its final July reading from a preliminary estimate of 54.4, indicating a modest improvement in household confidence.
Fed officials maintained a hawkish tone, with some arguing that inflation risks remain tilted to the upside and supporting a gradual quarter-point hike to prevent inflation from becoming entrenched.