Ella 
In early Asian trading on Friday, GBP/USD rose slightly to around 1.2670. At the same time, the U.S. dollar index retreated to a multi-week low near 104.00 on the previous trading day, recovering some losses. The Federal Reserve is cautious about inflation and the prospect of interest rate cuts this year. Investors will focus on speeches from the Fed’s Kashkari, Waller and Daly later in the day.
Several Fed officials stressed the need to keep borrowing costs higher for longer as they wait for more evidence of slowing inflation. On Thursday, Atlanta Fed President Raphael Bostic cautioned against the need to be patient on interest rates, saying there is still significant pricing pressure in the U.S. economy. Cleveland Fed President Loretta Mester said it may take longer than expected to gain confidence in the path of inflation, adding that the central bank should maintain its restrictive policy stance for longer. Federal Reserve policymakers remained cautious on interest rate policy, providing some support for the dollar and weighing on GBP/USD.
The U.S. Department of Labor (DOL) reported on Thursday that the number of Americans filing initial claims for unemployment benefits increased by 222,000 in the week ending May 11. The figure was higher than the consensus estimate of 220,000 and down from the previous reading of 232,000.
