Pound Sterling Price News and Forecast: GBP/USD may further appreciate as the US Dollar weakens
|GBP/USD rises to near 1.3600 due to risk-on mood, UK PMI data eyed
GBP/USD remains steady after four days of gains, trading around 1.3580 during the Asian hours on Thursday. The pair maintains its position near two-week highs as the US Dollar (USD) continues to weaken amid risk-on sentiment, driven by the optimism over further trade deals between the United States (US) and key partners.
The Financial Times reported that the European Union (EU) and the United States (US) are closing in on a deal that would impose 15% tariffs on EU goods imported into the US. Additionally, US President Donald Trump announced on Tuesday a major tariff deal with Japan, which includes a 15% tariff on Japanese exports. Read more...
GBP/USD continues to climb as trade deal hopes fuel Greenback declines
GBP/USD climbed on Wednesday, posting strong gains for a third straight day and clawing back toward the 1.3600 handle. The US Dollar (USD) is taking a beating across the board, driven higher by broad-market expectations of last-minute trade deals between the Trump administration and everybody else before the August 1 “reciprocal” tariff deadline. Greenback selling pressure across the FX space gave the Pound Sterling (GBP) a leg up, bolstering cable action further into the bullish side.
The US has a tentative trade agreement on the board with Japan, which would include a 15% reciprocal tariff on all Japanese goods, and the Trump administration may have made it harder, not easier, for foreign companies, at least those based in Japan, to move their production chains into the US. Rumors abound of another possible trade deal in the works with the European Union (EU), but key personnel within the Trump team have splashed cold water on those rumors, branding them speculation. Read more...
GBP/USD rises past 1.3550 as US–Japan trade deal fuels risk-on rally
The GBP/USD rose more than 0.30% on Wednesday, boosted by an upbeat risk appetite following the announcement of the US-Japan trade deal, which increased demand for high-beta currencies like the British Pound and other commodity currencies. At the time of writing, the pair trades at 1.3574, having hit a daily low of 1.3515.
On Tuesday, US President Donald Trump announced that an agreement had been reached, under which Japanese imports to the US would be subject to 15% tariffs. Previously, the White House sent a letter to Japan, fixing duties at 25%, including automobiles. The deal would compel Japan to invest hundreds of billions of dollars in the US, with approximately $550 billion in funds tied for US investments. Read more...
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