The pound traded little changed just above $1.34 by the end of a week overshadowed by poor UK economic releases and persistent uncertainty in US-Iran negotiations. April retail sales slumped 1.3%, nearly double the 0.6% decline forecast, led by a sharp fall in fuel sales amid rising prices, while the UK’s budget deficit ballooned to GBP 24.3 billion in April, topping the GBP 20.9 billion estimate and marking the highest April shortfall since 2020. The data followed earlier reports of softer-than-expected April inflation, an unexpected cooling in the labor market, and May PMI readings signaling a contraction in private sector activity, prompting traders to trim bets on Bank of England rate increases. Meanwhile, US Senator Marco Rubio cited "some good signs" in Iran talks, though Tehran’s uranium stockpile and control over the Strait of Hormuz remain key sticking points.