GBP/USD trades with negative bias above 1.3500 ahead of BoE Monetary Policy Report Hearings
The GBP/USD pair attracts some sellers during the Asian session on Tuesday and erodes a part of the overnight strong move up to the 1.3560 area, or a multi-day peak. Spot prices drop to the 1.3515 area, or a fresh daily low in the last hour amid a modest US Dollar (USD) uptick, though the fundamental backdrop warrants some caution for bearish traders.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, rebounds from a six-week trough touched on Monday and turns out to be a key factor exerting downward pressure on the GBP/USD pair. Any meaningful USD appreciation, however, seems elusive in the wake of the growing acceptance that the Federal Reserve (Fed) will lower borrowing costs further this year amid signs of easing inflationary pressures. Read more…
GBP/USD rebounds as trade woes weigh on Greenback
GBP/USD jumped on Monday, kicking off the June trading window by climbing back above 1.3550 after a broad-market weakening in Greenback flows. Trade frictions continue to weigh on the US Dollar, and Cable traders are leaning into the bullish side ahead of the Bank of England’s (BoE) latest Monetary Policy Report hearings before British parliament on Tuesday.
The Trump administration hit another flurry of trade headlines on Monday; Donald Trump announced late lasts week that he intended to double tariffs on all steel imported into the US to 50% beginning next week. President Trump announced the new trade measure during a speech to a United Auto Workers union rally last Friday. China has responded to the Trump administration’s accusations that China is violating early trade terms that the two countries tentatively reached during sideline meetings in Switzerland in May. Read more…
GBP/USD steadies near 1.3540 as the US Dollar struggles under global pressure
The British Pound (GBP) bounces back at the start of the week, advancing against the US Dollar (USD) on Monday and trimming last week’s losses. The GBP/USD pair is rebounding modestly as investors pare back US Dollar holdings amid lingering uncertainty over the global economic outlook.
At the time of writing, the GBP/USD pair is trading near 1.3540, easing from the intraday high of 1.3559. The pair experienced a sharp rally earlier in the day but struggled to maintain gains as buying interest waned amid a cautious market tone. Read more…