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GBP/USD rebounds above 1.3300 ahead of UK retail sales data

GBP/USD rose toward 1.3325 after snapping a five-day losing streak, while traders watched US dollar safe haven demand tied to fresh US military strikes against Iranian targets.

Reported · Written up by our desk · Major Pairs

GBP/USD recovered some lost ground to around 1.3325, snapping a five-day losing streak during Friday’s Asian trading hours, FXStreet said. The move comes as traders look ahead to UK Retail Sales data later in the day.

FXStreet noted that renewed military tensions in the Middle East could keep supporting the US dollar as a safe-haven. It cited US Central Command, which said it launched its 13th consecutive night of strikes against Iranian targets, alongside remarks from US President Donald Trump about holding Iran responsible for actions linked to the Houthis.

The same outlet said markets are also focused on the Bank of England’s next decision, with expectations that the BoE will keep its benchmark rate steady at 3.75% while assessing the conflict’s impact. Financial markets are pricing in one or possibly two quarter-point rate hikes by the end of 2026, according to Reuters.

For the UK data, Retail Sales are expected to fall 0.3% month over month in June after rising 1.2% in May, FXStreet added. Scotiabank said policy expectations remain anchored for next week’s MPC decision, where Bank Rate is expected to be held at 3.75%, and that view continues to shape near-term trading in the pound versus the dollar.

Latest closeGBP/USD 1.331 ▼0.5%

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