GBP/USD gathers strength above 1.3600 on softer US Dollar
The GBP/USD pair gains ground around 1.3605 during the Asian trading hours on Thursday. The Greenback softens against the Pound Sterling amid the prospects for more interest rate cuts by the Federal Reserve (Fed) this year. Traders await the US weekly Initial Jobless Claims data later on Thursday. Also, the Federal Reserve (Fed) officials are scheduled to speak, including Alberto Musalem, Christopher Waller and Mary Daly.
US President Donald Trump on Monday warned trading partners of sharply higher US tariffs from August 1, after he delayed all but 10% of his April levies on most countries to give them time to strike agreements with the US. US Deputy Treasury Secretary Michael Faulkender remarked on Wednesday that even if tariffs were implemented, discussions may continue beyond the August deadline. Nonetheless, tariff uncertainty triggered by Trump could undermine the US Dollar (USD) and create a tailwind for the major pair. Read more…
GBP/USD muddles through another tariff-heavy day
GBP/USD spun a tight circle on Wednesday, trapped near the 1.3700 handle as traders await any kind of meaningful change to macroeconomic factors. The Trump administration has put the pedal to the metal on new tariff threats, issuing notices of additional double-digit tariffs on a handful of countries.
Despite the uptick in planned tariffs from President Trump, market sentiment remains roughly steady for the time being. The Trump team has a terrible track record of enacting and maintaining frequently threatened tariffs, and investors are banking on another delay at some point. The Trump team initially announced sweeping “reciprocal” tariffs, which were delayed to Jul 9, then again to August 1. Trump insists that this time, he really means it, and they won’t be delayed any further. Read more…
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Christeen Latson