GBP/USD struggled to capitalize on the overnight modest recovery gains
The GBP/USD pair held on to its modest intraday gains near the 1.3220-25 region and had a rather muted reaction to the UK macro data dump. The pair edged higher during the trading action on Friday and was looking to build on this week's recovery move from a one-year low, around the 1.3160 region touched on Wednesday. A subdued US dollar price action was seen as a key factor that extended some support to the GBP/USD pair, though a combination of factors kept a lid on any meaningful gains.
Expectations that the imposition of fresh COVID-19 restrictions in England could force the Bank of England to delay its decision to hike interest rates at its December policy meeting. This, along with persistent Brexit-related uncertainties, acted as a headwind for the British pound and held back traders from placing aggressive bullish bets around the GBP/USD pair. In the latest Brexit development, French President Emmanuel Macron accused the current UK government of failing to keep its word on Brexit and fishing licenses. Adding to this, Annick Girardin, France's sea minister warned on Thursday that it would call on the EU to go to litigation if the 53 licenses awaiting UK approval are not granted by Friday evening.