Pound Slips on UK GDP Contraction, Risk Appetite Improves

The British Pound weakened against the US Dollar on Friday after UK GDP data revealed a contraction in April. The economic setback weighed on sterling sentiment.

At the same time, news of a diplomatic agreement between the US and Iran boosted risk appetite, leading to an initial sell-off in the safe-haven US Dollar. However, the Greenback later erased its earlier losses and traded above its opening level for the session.

Traders are now watching for further developments on both the UK economic outlook and US-Iran relations for near-term direction.