The British pound slipped against the U.S. dollar on Thursday, with GBP/USD drifting toward the 1.3300 level as investors turned cautious ahead of upcoming UK retail sales figures. The data, set to be released on Friday, could offer fresh insight into consumer spending trends and influence expectations for Bank of England policy.
The modest pullback comes amid a broader consolidation in currency markets, with traders largely in wait-and-see mode ahead of major economic catalysts. While the pound has enjoyed a steady climb in recent weeks, its momentum has cooled as uncertainty over UK economic resilience resurfaces.
Economists are forecasting a slight decline in retail sales for March, which could reinforce the case for a more dovish stance from the BoE in the coming months. With inflation easing and wage growth moderating, policymakers may have more room to consider rate cuts later this year.
Meanwhile, the U.S. dollar remains broadly supported by firm Treasury yields and persistent safe-haven flows, adding to the pressure on sterling. However, any significant deviation in UK retail data—positive or negative—could quickly shift sentiment and bring fresh volatility to the pair.
For now, the pound remains anchored just above 1.3300, as traders await signals from both domestic economic indicators and global risk trends.
