Pound Sterling Price News and Forecast: GBP/USD posts modest gains around 1.2790 on early Wednesday

FXStreet Team FXStreet

GBP/USD holds positive ground near 1.2800, Bailey's testimony in focus

The GBP/USD pair trades with mild gains to near 1.2790 during the early European trading hours on Wednesday. The US Dollar (USD) hovered near a three-month low amid concerns over slowing US economic growth and the impact of tariffs.

"Fears about weaker U.S. and global economic activity are manifesting in the markets, with cyclicals driving the sell-off," said Kyle Rodda, senior financial markets analyst at capital.com. Additionally, Trump's 25% levies on Mexican and Canadian imports took effect on Tuesday, alongside a hike in Chinese duties to 20%. Read more...

GBP/USD holds gains amid soft US Dollar on tariff fallout

The Pound Sterling (GBP) clings to early gains, extending its advance to two days versus the US Dollar (USD) as tariffs enacted by United States (US) President Donald Trump against Mexico, Canada, and China come into effect. Although the market is risk-averse, traders punish the Greenback as the economic outlook darkens. The GBP/USD pair is trading at 1.2708, up 0.08%

The economic calendar in the US is light, except for speeches by Federal Reserve (Fed) officials. Tariffs of 25% on imports from Mexico and Canada and an additional 10% on Chinese products shifted investors' moods. Despite these measures being seen as inflation-prone, US Treasury bond yields are edging lower, with the 10-year T-note down seven basis points in the week at 4.132%. Read more...

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