The GBP/USD pair edged higher on Friday, buoyed by a softer US dollar. However, the pound failed to capitalize on the momentum, remaining capped below the 1.2200 level, signaling ongoing investor caution.
Weaker-than-expected US data weighed on the dollar, with markets recalibrating expectations for future Federal Reserve rate hikes. Despite the slight recovery in the pound, the lack of strong UK economic drivers continues to hinder a sustained upward move. Investors remain focused on next week’s key economic events, including UK inflation data and US GDP growth figures, which could set a clearer direction for the pair.
