Little Changed On Friday

The USD has nudged higher in Asia-Pac hours, with the USD supported by a bit of a pullback from the recent extremes in longer dated U.S. Tsy yields and a defensive feel for global equity markets. Still, GBP/USD is off worst levels, with spot trading a handful of pips lower at $1.3780 into European hours. The rate is comfortably above Thursday's low ($1.3742), which came about on the back of broader pressure for risk assets ahead of NY hours, with that pressure easing a little as U.S. equities recovered from worst levels of the day.

• Much of the overnight local news flow has focused on some of the nuances around COVID restrictions and the fringes of fiscal policy/broader domestic politics, with a lack of meaningful idiosyncratic fundamental inputs evident.
• UK monthly GDP & economic activity data metrics headline the local docket on Friday, with comments from BoE's Bailey also due.
• Our technical analyst notes that the GBP/USD outlook remains bearish after recent gains stalled at the July 6 high ($1.3898), which now represents initial resistance. The bear trigger is located at the July 2 low ($1.3733), with further support located at the April 16 low $1.3717).
• There aren't any notable FX options expiries to be aware of in the coming days.