The British pound continued to struggle on Wednesday, marking its fourth consecutive daily decline against the US dollar. GBP/USD briefly dipped toward 1.3300 before staging a mild rebound to the 1.3350 area, yet still closed the session lower as selling pressure on Cable persisted.
With little on the UK data calendar for Thursday, traders are expected to remain cautious ahead of a series of key economic releases on Friday, which will feature updates from both the UK and the US.
Global market sentiment softened on Wednesday as the Trump administration weighed potential retaliatory measures against China, following Beijing’s recent move to impose strict export controls on rare earth materials. The White House is reportedly considering new export restrictions on US-developed software, stoking fears that escalating trade tensions could once again disrupt global markets.
US President Donald Trump has already suspended planned trade talks with Chinese President Xi Jinping and floated the possibility of imposing an additional 155% tariff on all Chinese imports. The renewed friction between the world’s two largest economies has led investors to retreat from risk-sensitive assets, adding further pressure on the pound.
Attention now turns to Friday’s data releases, which could inject fresh volatility into the pair. In the London session, the UK Retail Sales report and S&P Global PMI data for September are due, offering insight into the strength of consumer spending and business activity. Later in the day, the US Consumer Price Index (CPI) inflation data will headline the New York session, providing one of the final inflation readings before the Federal Reserve’s next policy meeting on October 29.
