The Pound Sterling finds cushion near 1.2400 after mixed UK Retail Sales data for March.
Geopolitical fears and a strong outlook for the US Dollar support the downside in the GBP/USD pair.
Fed's Bostic said he is comfortable with interest rates remaining high.
The Pound Sterling (GBP) finds a temporary support near almost five-month low around 1.2400 in Friday’s London session. The GBP/USD pair remains on the backfoot due to deepening geopolitical tensions after Israel reportedly launched an attack against Iran, which improved the appeal for the safe-haven US Dollar. Moreover, continued hawkish guidance on interest rates from Federal Reserve (Fed) policymakers kept the US Dollar Index (DXY) above the crucial support of 106.00.
On Thursday, Atlanta Fed President Raphael Bostic said progress in inflation towards the 2% target will be slower than expected. Bostic also said he is comfortable with interest rates remaining high as labor demand is robust and wage growth remains resilient.
On the economic calendar front, the United Kingdom Retail Sales report for March has highlighted the consequences of higher interest rates. UK Retail Sales remained stagnant month-on-month as a decline in food and non-store retailing was offset by spending on fuel and non-food items.
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