GBP/USD Weekly Outlook: Pound Sterling buyers stay hopeful despite tariff jitters
The Pound Sterling (GBP) sustained its correction from four-month highs against the US Dollar (USD) over the past week, keeping the GBP/USD pair below the 1.3000 threshold. After a brief corrective stint from multi-month highs above 1.3000, GBP/USD entered a phase of consolidation, gyrating between 1.3000 and 1.2870.
Hopes of targeted reciprocal tariffs by US President Trump and stronger-than-expected US S&P Global preliminary PMI data helped alleviate concerns about an economic slowdown, aiding the US Dollar’s recovery while capping the pair’s upside. Read more…
GBP/USD attracts some buyers above 1.2950 on weaker US Dollar
The GBP/USD pair gathers strength to near 1.2965 during the Asian trading hours on Monday. The concerns that US President Donald Trump’s tariffs will ignite inflation and dampen economic growth weigh on the US Dollar (USD) and act as a tailwind for the major pair.
Last week, Trump announced a 25% tariff on imported cars and light trucks set to take effect on April 3. This measure comes on top of a flat 25% tariff on steel and aluminum, and Trump’s impending reciprocal tariff announcement on Wednesday. Many analysts are worried that tariffs will have a negative impact on the US economy, even while limiting the Federal Reserve’s (Fed) chance for reducing interest rates while also increasing inflation in the near term. This, in turn, might drag the USD lower and lift the GBP/USD pair in the near term. Read more…