- GBP/USD rises 0.31%, boosted by weaker USD after Trump announces 25% metal tariffs.
- Risk aversion spikes with Wall Street braced for negative open; focus on Powell's upcoming testimony.
- BoE's Catherine Mann supports a significant rate cut yet upholds a long-term higher rate outlook.
The British Pound (GBP) resumed its uptrend early on Tuesday morning following the latest United States (US) President Donald Trump tariff round, which included base metals like aluminum and steel. The Greenback weakened, as seen by the GBP/USD pair trading above 1.2400, gaining 0.31%.
British Pound ascends amid new US tariffs and cautious central bank rhetoric
Wall Street is set to open in the red, with traders turning risk-averse after Trump signed a proclamation to reimpose a 25% tariff on steel and aluminum imports, effective March 12. In the meantime, a slight economic docket, mainly driven by Federal Reserve (Fed) speakers, leaves traders awaiting Fed Chair Jerome Powell's testimony at the US Congress.
In the meantime, Cleveland’s Fed President Beth Hammack commented that she favors holding rates steady for some time so the Fed can assess the economy. She added that policy is ‘modestly restrictive’ and emphasized that it is still unclear whether inflation will keep moving towards the Fed’s 2% goal.
Across the Pond, Bank of England (BoE) member Catherine Mann voted for a 50 basis points (bps) interest rate cut last week, joining Swati Dhingra. Mann was a well-known uber-hawk in the BoE.
Mann said that she still views restrictive monetary policy as necessary and sees the long-term neutral rate (R-star) at the higher end of the 3.0% - 3.5% range, given by BoE's latest survey of investors. She added: “I choose 50 basis points now, along with continued restrictiveness in the future and a higher long-term Bank Rate to 'cut through the noise.’”
GBP/USD Price Forecast: Technical outlook
Given the fundamental backdrop, the GBP/USD pair extended its gains after printing an ‘inverted hammer’ preceded by a downtrend. Nevertheless, downward pressure will persist unless buyers clear the 50-day Simple Moving Average (SMA) at 1.2479, which could expose the latest cycle high at 1.2549, February’s 5 peak.
In that outcome, GBP/USD would extend its rally and challenge the 100-day SMA at 1.2718. Conversely, if the pair drops below 1.2400, sellers could drive the exchange rate towards the February 3 daily low of 1.2248.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.22% | -0.29% | 0.21% | 0.06% | -0.10% | -0.16% | 0.22% | |
| EUR | 0.22% | -0.09% | 0.42% | 0.28% | 0.12% | 0.06% | 0.45% | |
| GBP | 0.29% | 0.09% | 0.51% | 0.36% | 0.19% | 0.13% | 0.52% | |
| JPY | -0.21% | -0.42% | -0.51% | -0.14% | -0.31% | -0.37% | 0.02% | |
| CAD | -0.06% | -0.28% | -0.36% | 0.14% | -0.16% | -0.22% | 0.16% | |
| AUD | 0.10% | -0.12% | -0.19% | 0.31% | 0.16% | -0.07% | 0.32% | |
| NZD | 0.16% | -0.06% | -0.13% | 0.37% | 0.22% | 0.07% | 0.38% | |
| CHF | -0.22% | -0.45% | -0.52% | -0.02% | -0.16% | -0.32% | -0.38% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes above 1.1350 on Easter Friday
EUR/USD enters a consolidation phase above 1.1350 on Friday as the trading action remains subdued, with major markets remaining closed in observance of the Easter Holiday. On Thursday, the European Central Bank (ECB) announced it cut key rates by 25 bps, as expected.
GBP/USD fluctuates below 1.3300, looks to post weekly gains
After setting a new multi-month high near 1.3300 earlier in the week, GBP/USD trades in a narrow band at around 1.32700 on Friday and remains on track to end the week in positive territory. Markets turn quiet on Friday as trading conditions thin out on Easter Holiday.
Gold ends week with impressive gains above $3,300
Gold retreated slightly from the all-time high it touched at $3,357 early Thursday but still gained more than 2% for the week after settling at $3,327. The uncertainty surrounding US-China trade relations caused markets to adopt a cautious stance, boosting safe-haven demand for Gold.
How SEC-Ripple case and ETF prospects could shape XRP’s future
Ripple consolidated above the pivotal $2.00 level while trading at $2.05 at the time of writing on Friday, reflecting neutral sentiment across the crypto market.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.