The British pound drifted lower against the US dollar on Thursday, with GBP/USD slipping toward the 1.3300 mark despite a more upbeat tone from US President Donald Trump on trade negotiations with China. The move suggests broader market caution continues to weigh on sterling.
While Trump’s comments offered a brief lift to risk sentiment, traders appeared reluctant to push the pound higher amid lingering Brexit-related uncertainty and ahead of key UK economic data. The lack of fresh catalysts from the UK left the currency vulnerable to dollar-driven flows.
The US dollar maintained a steady tone, underpinned by solid Treasury yields and investor demand for safety. The greenback’s resilience added to the pressure on the pound, even as risk appetite showed tentative signs of improvement on the trade front.
Market participants are also eyeing upcoming UK retail sales figures, which could provide fresh insight into consumer spending trends and influence expectations for the Bank of England’s next move.
Despite the trade optimism, the pound’s path remains clouded by domestic political noise and global macro uncertainty, leaving GBP/USD exposed to short-term volatility.
