- GBP/USD falls 0.16% to 1.2398, continuing its decline as Trump threatens tariffs on Canada and Mexico.
- US inflation aligns with expectations, Core PCE Index rises 0.2% MoM; Fed's rhetoric supports dollar strength.
- US Dollar Index (DXY) climbs 0.20%, reflecting gains against major currencies, including the Pound.
The Pound Sterling extended its losses for the second consecutive day as US President Donald Trump tariffs rhetoric sent ripples across the financial markets. Therefore, the Greenback remains bid, as economic data takes the backseat. The GBP/USD trades at 1.2398, down 0.16%.
GBP/USD dips amid heightened US trade tension, persistent UK economic concerns.
On Thursday, Trump reiterated that he will impose tariffs on Mexico and Canada, which lent a lifeline to the US Dollar, which was posting losses before ending the day in the green. Most G10 Forex currencies, depreciated, including Sterling.
Worries about an economic slowdown in the UK kept the GBP pressured amid concerns on the budget presented by chancellor Rachel Reeves.
In the meantime, inflation in the United States (USD) rose in December. The Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) preferred inflation gauge increased by 0.2% MoM as expected, up from November 0.1%. On an annual basis, the underlying PCE remained unchanged at 2.8% as projected.
Fed speakers are also providing some support for the US Dollar, as Governor Michelle Bowman said that inflation risks are tilted to the upside. At the time of writing, Chicago’s Fed President Austan Goolsbee added that he liked December’s inflation report, stating that he’s comfortable that inflation is on the path to 2% target.
The data maintained the “status quo.” US equities continued to trend higher, and the buck gained some traction, as the GBP/USD dropped from around 1.2430 to 1.2408.
The US Dollar Index (DXY), which tracks the buck’s value against a basket of six currencies, is rising 0.20% up at 108.41. The US 10-year Treasury bond yield drops one and a half basis points to 4.50%, after the data.
GBP/USD Price Forecast: Technical outlook
Given the backdrop, the GBP/USD bias remains downwards. Following the pair’s clash at the 50-day Simple Moving Average (SMA) near 1.2500, it has trended lower, extending its fall beneath 1.2400. If Sterling weakens further, the next support would be intermediate support at January’s 23 low of 1.2292, before challenging January 17 swing low of 1.2159.
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 Euro.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.39% | 0.29% | 0.25% | 0.19% | -0.11% | -0.11% | 0.02% | |
EUR | -0.39% | -0.10% | -0.16% | -0.20% | -0.49% | -0.50% | -0.36% | |
GBP | -0.29% | 0.10% | -0.08% | -0.09% | -0.39% | -0.39% | -0.26% | |
JPY | -0.25% | 0.16% | 0.08% | -0.04% | -0.33% | -0.34% | -0.20% | |
CAD | -0.19% | 0.20% | 0.09% | 0.04% | -0.31% | -0.30% | -0.16% | |
AUD | 0.11% | 0.49% | 0.39% | 0.33% | 0.31% | -0.01% | 0.14% | |
NZD | 0.11% | 0.50% | 0.39% | 0.34% | 0.30% | 0.00% | 0.14% | |
CHF | -0.02% | 0.36% | 0.26% | 0.20% | 0.16% | -0.14% | -0.14% |
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.

GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.

Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.

Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

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.