GBP/USD falls toward 1.3300 as Trump signals optimism over potential US-China trade deal
The GBP/USD pair continues its downward trajectory for the third straight day, trading around 1.3310 during Thursday’s Asian session. Market participants appear to be positioning cautiously ahead of the US Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI), set to be released later in the North American session.
The US Dollar (USD) is gaining strength, buoyed by comments from US President Donald Trump during a NewsNation Town Hall interview early Thursday. Trump expressed optimism about a possible trade deal with China, stating there is a “very good probability we’ll reach a deal.” He emphasized that any agreement must align with US interests and also hinted at potential future deals with India, South Korea, and Japan. Additionally, Trump announced that a trade agreement with Ukraine had been finalized earlier in the day. Read more…
GBP/USD drops as US economy shrinks, inflation holds firm
The Pound Sterling (GBP) tumbled against the US Dollar (USD) as the economy in the United States (US) contracted, as revealed by Gross Domestic Product (GDP) figures for Q1 2025. At the time of writing, GBP/USD trades at 1.3331, down 0.51%
The US Commerce Department showed that GDP contracted by 0.3% in Q1 2025, down from a 2.4% growth in the last quarter of 2024 and missing the consensus of a modest 0.3% growth. Meanwhile, a measure of prices for the same period rose sharply by 3.7%, indicating a reacceleration of inflation. Read more…
