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

• US Consumer Sentiment improved, while inflation expectations edged lower.
• UK’s GDP for the fourth quarter contracted and flashed a gloomy economic outlook.
• GBP/USD traders are eyeing UK CPI, Retail Sales, and US Retail Sales data.

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.