Photo by Colin Watts on Unsplash
 

GBP/USD fell for a fourth straight day on Wednesday, coming within inches of 1.3300 before staging a half-hearted recovery to the 1.3350 region but still ending the day on a down note. Cable traders will be getting a breather on the economic data front until a batch of key releases on Friday that will feature both UK and US data updates.

Global risk appetite took a knee on Wednesday as the Trump administration publicly weighs its options on retaliating against China, who imposed stiff export controls on rare earths in recent weeks. US President Donald Trump has run the gamut of trade war retaliations, from canceling planned trade talks with Chinese President Xi Jinping to threatening an additional 155% tariff on all Chinese goods. Now, the Trump administration is teasing that it may impose export controls of its own on US-producted software products, raising investor concerns that the ongoing trade spate between the US and China could begin to negatively impact markets.

After a lull in the economic data docket on Thursday, impactful releases will resume on Friday. UK Retails Sales and the S&P Global Purchasing Managers Index (PMI), both for September, will release during Friday’s London market session. US inflation data will follow up to close out the trading week, with US Consumer Price Index (CPI) inflation in the barrel and will serve as one of the last key inflation readings before the Federal Reserve (Fed) convenes for its next interest rate decision on October 29.
 

GBP/USD daily chart
 

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