GBP/USD Strengthens Near 1.3550 Ahead of US Retail Sales Data

GBP/USD Gains on Weaker US Dollar and Strong UK Growth

The GBP/USD currency pair rose to around 1.3545 during Friday’s early European session. The Pound Sterling gained ground against a broadly weaker US Dollar, supported by stronger-than-expected UK economic data showing 0.3% growth in the second quarter.

Market Awaits Key US Retail Sales Report

Traders remain cautious ahead of the US July Retail Sales report scheduled for release later on Friday. The report is expected to influence USD sentiment and GBP/USD price action.

Fed Rate Cut Expectations Adjusted After US Inflation Data

Earlier in the week, traders scaled back bets on a Federal Reserve rate cut in September following hotter-than-expected US Producer Price Index (PPI) data. According to the CME FedWatch tool, the probability of a 25 basis points rate cut now stands at nearly 92%, down from 96% before the PPI release.

Outlook

With mixed US economic signals and stronger UK growth, GBP/USD may continue to show volatility as markets digest incoming data and Fed policy expectations.