The British pound fell for a second straight day on Friday, sliding 0.22% against the US dollar as a geopolitically driven spike in oil prices revived inflation fears. GBP/USD traded at 1.3449 after peaking near 1.3480, with safe-haven dollar demand and a UK leadership change adding to the pressure.
The pound retreated 0.22% against the dollar during the North American session on Friday, trading at 1.3449 after peaking near 1.3480 in its second straight daily decline. High geopolitical tensions triggered a jump in oil prices, heightening fears of a reacceleration of inflation.
A firmer dollar deepened the drag. Earlier in the day GBP/USD had traded 0.4% lower near 1.3427 during European hours, after holding around 1.3460 in the Asian session. The greenback drew safe-haven support from intensifying geopolitical conflicts in the Middle East, just ahead of the preliminary Michigan Consumer Sentiment Index for July.
Domestic politics added to the strain. The pound faced selling pressure as Britain works through a leadership change.
Source: FXStreet
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