GBP/USD is subdued around 1.2200 after printing a four-week high

The Pound Sterling (GBP) slid slightly vs. the US Dollar (USD) Friday, following the release of the University of Michigan (UoM) Consumer Sentiment for January in the US, which exceeded estimates, while the poll showed that inflation expectations for one-year were downward revised. At the time of writing, the GBP/USD is trading at 1.2204 after hitting a daily low of 1.2150.

GBP/USD range-bound awaiting next week’s data

The GBP/USD languished late in the European session/early New York session after printing a four-week high. Data released on Thursday flashed that inflation in the United States (US) is indeed cooling down. With December’s Consumer Price Index (CPI) dropping beneath 7% and core CPI below 6%, spurring hopes that the US Federal Reserve would shift to lower-sized rate hikes, in the amount of 25 bps.

Later, the University of Michigan (UoM) revealed that Consumer sentiment for January was better than expected, with the reading hitting 64.6 vs. forecasts of 60.5. Americans estimate inflation for one year would edge to 4%, from December’s 4.4%, while estimates for five years uptick to 3%, from 2.9%.

In the UK, the Gross Domestic Product (GDP) on a monthly basis beat estimates, rising by 0.1%, while for a three-month changed was at -0.3%, cementing the case for a gloomy economic outlook.

Looking ahead to next week, the UK economic docket will feature labor market data, the Consumer Price Index, and Retail Sales. Across the pond, the US economic docket will unveil Retail Sales, US Housing Starts, Initial Jobless Claims, and Existing Home Sales.

GBP/USD Key Technical Levels