Sterling fell in European trade on Friday against a basket of major rivals, resuming losses against the dollar and backing away from seven-month highs on profit-taking.

Bank of England Governor Andrew Bailey warned against the negative impact of US tariffs on UK economic activities, boosting the odds of a BOE rate cut in May.

Now investors await important UK retail sales later today to gather more clues on the path ahead for interest rates.

The Price

The GBP/USD price fell 0.5% today to $1.3279, with a session-high at $1.3342.

The pound rose 0.65% on Thursday against the dollar, marking the first profit in three days.

The pound backed off a seven-month high against the dollar at $1.3424 last week amid active profit-taking.

Bailey

Bank of England Governor Andrew Bailey said hes focusing on the shock that could be felt by the economy due to US tariffs and other retaliatory measures.

He added the BOE is focusing on achieving a nuanced balance between weak growth and inflationary pressures due to local supply restrictions.

UK Rates

Concerns about recession are renewing pressures once more on global central banks, with the odds of a Bank of England interest rate cut standing at 55% for May.

Now traders await important UK data later today to gather more clues, with retail sales expected down 0.3% in March, compared to a 1% rise in February.

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