GBP/USD continues its decline for the second straight session, trading near 1.2940 during Friday's Asian session.

The pair faces challenges as the Pound Sterling (GBP) struggles amid weakened risk sentiment, exacerbated by concerns over global trade after US President Donald Trump threatened a 200% tariff on European wines and champagne, unsettling markets.

Traders now await the UK's monthly Gross Domestic Product (GDP) and factory data for January, set for release on Friday. Investors will closely watch the UK GDP figures as the Bank of England (BoE) has expressed concerns over the economic outlook.

In its February policy meeting, the BoE revised its GDP growth forecast for the year to 0.75%, down from the 1.5% projected in November.

The US Dollar (USD) appreciates due to mounting concerns over a global economic slowdown, with traders focusing on Friday's Michigan Consumer Sentiment Index data.

The US Dollar Index (DXY), which tracks the USD against six major currencies, gained strength after Thursday's positive jobless claims report and weaker-than-expected Producer Price Index (PPI) data. The DXY is trading around 104.00 at the time of writing.

Source: FXStreet