|

GBP/USD climbs above 1.3100 on persistent USD weakness

  • GBP/USD builds on weekly gains and rises toward 1.3100 on Friday.
  • China's retaliation against heightened US tariffs put additional weight on the USD.
  • The US economic calendar will feature producer inflation data for March.

After closing the third consecutive day in positive territory on Wednesday, GBP/USD preserves its bullish momentum and rises about 1% on the day at around 1.3100.

The US Dollar stays under heavy selling pressure

The unabated selling pressure surrounding the US Dollar (USD) allows the pair to extend its weekly uptrend on Friday amidst escalating fears over the US-China trade conflict weighing on the US economic outlook.

China's Finance Ministry announced on Friday that they will raise additional tariffs on US imports from 84% to 125% from April 12, in retaliation to US President Donald Trump's decision to raise tariffs on Chinese goods.

The USD Index, which gauges the USD's valuation against a basket of six major currencies, was last seen fluctuating at its weakest level since April 2022 below 99.50.

Later in the session, the Producer Price Index (PPI) for March and the University of Michigan's preliminary Consumer Confidence Index data for April will be featured in the US economic calendar.

Investors will also pay close attention to fresh developments surrounding the US-China trade conflict heading into the weekend.

British Pound PRICE This week

The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-3.90%-1.71%-2.23%-2.62%-3.02%-4.12%-4.56%
EUR3.90%2.58%2.39%1.97%0.85%0.40%-0.07%
GBP1.71%-2.58%-1.46%-0.60%-1.68%-2.13%-2.59%
JPY2.23%-2.39%1.46%-0.36%0.15%-0.71%-2.05%
CAD2.62%-1.97%0.60%0.36%-0.75%-1.54%-2.26%
AUD3.02%-0.85%1.68%-0.15%0.75%-0.45%-0.92%
NZD4.12%-0.40%2.13%0.71%1.54%0.45%-0.47%
CHF4.56%0.07%2.59%2.05%2.26%0.92%0.47%

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).

US-China Trade War FAQs

Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living.

An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies.

The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

More from Eren Sengezer
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD flatlines below 1.1800 ahead of Fed Minutes

EUR/USD struggles to find direction and continues to move sideways below 1.1800 for the second consecutive day on Tuesday as markets remain in holiday mood. Later in the American session, the Federal Reserve will publish the minutes of the December policy meeting.

GBP/USD retreats to 1.3500 area following earlier climb

GBP/USD loses its traction and trades flat on the day near 1.3500 after rising to the 1.3530 area early Tuesday. Trading conditions remain thin ahead of the New Year holiday, limiting the pair's volatility. The Fed will publish December meeting minutes in the late American session.

Gold rebounds toward $4,400 following sharp correction

Gold gathers recovery momentum and advances toward $4,400 on Tuesday after losing more than 4% on Monday. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron steadies as Justin Sun invests $18 million in Tron Inc.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).