The pound slipped against other major currencies in early European deals on Friday, as European stocks declined after a Federal Reserve official indicated that the central bank may slow the pace of its asset purchases as early as this summer if various labor market indicators continue to register appreciable improvement.
While speaking at the presentation to Portland Business Journal, John Williams, President and Chief Executive Officer of Federal Reserve Bank of San Francisco told yesterday that the bond buying program that was initiated to stimulate the economy could be halted sometime late this year.
"Assuming my economic forecast holds true and various labor market indicators continue to register appreciable improvement in coming months, we could reduce somewhat the pace of our securities purchases, perhaps as early as this summer," Williams said.
The pound slipped to 1.5223 against the greenback, nearing multi-week low of 1.5173 reached on Wednesday. On the downside, the pound-greenback pair may break 1.50 level.
The U.K. currency slipped to 1.4704 against the franc, losing 0.38 percent from an early high of 1.4760. The next downside target level for the pound-franc pair lies around 1.46. At Thursday's close, the pair traded at 1.4726.
The pound declined to 0.8453 against the euro, after having eased from Thursday's 9-day high of 0.8420. The pound may eye next downside target level around 0.855.
The pound that advanced to 156.35 against the yen earlier pared gains shortly thereafter. The pound-yen pair is now trading at 156.05.
The Reuters/University of Michigan's preliminary report on U.S. consumer consumer confidence for May is due in the New York morning session.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.