Amanda Cooper

The pound eased on Friday as nervy investors flocked to the dollar in light of growing pessimism over the outlook for the U.S. economy as President Donald Trump's tariffs are about to come into force.

Global shares traded cautiously higher on Tuesday in light of growing evidence of a softening in the U.S. economy ahead of earnings from Nvidia , while the euro eased below the one-month highs that followed Germany's weekend election.

The pound edged up on Friday after data showed UK consumer spending picked up much more sharply than expected in January, but was weaker in the key shopping month of December than initially thought.

Stocks and dollar held steady on Wednesday ahead of U.S. inflation data that could uphold Federal Reserve Chair Jerome Powell's view that there is no need to rush to cut rates, while a rise in Treasury yields knocked gold back from record highs.

U.S. stock futures tumbled and the dollar rose on Wednesday after data showed consumer inflation picked up more than expected in January, underscoring Federal Reserve Chair Jerome Powell's message that there is no rush to cut interest rates.

U.S. stock futures steadied on Friday ahead of U.S. payrolls data, with investors cautiously optimistic that the world might avoid a full-on trade war, while the prospect of more rate hikes in Japan this year briefly sent the yen towards two-month highs.

The pound headed for a fourth monthly loss on Friday, increasingly under pressure from investor concern about the outlook for the British economy, following January's bond market turmoil and in light of weakening UK data.

The U.S. dollar advanced against major currencies on Friday, while the Canadian dollar weakened and the Mexican peso edged higher after the White House reiterated that President Donald Trump will impose tariffs on Saturday.

The pound fell on Thursday after data showed the British economy grew more slowly than expected in November, which could give the Bank of England more room to cut interest rates this year.

Global stocks edged up on Wednesday in cautious trading ahead of U.S. consumer price data that could shift the monetary policy outlook there, while investors waited to see if the earnings of big banks would match sky-high expectations.