GBP/USD takes a hard rejection from fresh highs, but holds on the bullish side
GBP/USD briefly clipped the 1.3200 handle for the first time in six months on Thursday, climbing into fresh highs as the Greenback turns sour across the board. The Trump administration’s “reciprocal” tariffs and a flat tariff have kicked the legs out from beneath market sentiment, despite a delayed reaction to tariff announcements that came after US markets closed on Wednesday.
This week, the UK economic data release schedule is relatively sparse, but a new report on US Nonfarm Payrolls (NFP) will be published on Friday. This NFP data could significantly influence markets as the US economy transitions to a post-tariff landscape, with March’s labor figures expected to serve as a “bellwether” for the effects of the Trump administration’s tariff strategies. Read more...
Pound Sterling outperforms US Dollar as Trump tariffs fuel US recession risks
The Pound Sterling (GBP) surges to near 1.3200 against the US Dollar (USD) during the North American trading hours on Thursday, the highest level seen in almost six months. The GBP/USD pair soars as the US Dollar plummets after US President Donald Trump unveils worse-than-expected tariffs for his trading partners. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, nosedives to near 101.35.
US President Trump announced a 10% baseline duty on all products entering the US and additional specific levies on the majority of its trading allies, which have followed threats of countermeasures by their leaders. Market participants expect that the full-scale implementation of tariffs will lead the US economy to a recession. Such a scenario underpins the need for more interest rate cuts from the Federal Reserve (Fed) despite knowing that higher levies have also stoked worries about persistent inflation. Read more...
GBP/USD Price Forecast: Sticks to strong gains near multi-month top, above mid-1.3000s
The GBP/USD pair gains strong follow-through positive traction for the second successive day on Thursday and advances to its highest level since October 2024 during the Asian session. Spot prices currently trade just above mid-1.3000s, up 0.40% for the day, and seem poised to climb further amid a bearish US Dollar (USD).
The USD Index (DXY), which tracks the Greenback against a basket of currencies, dives to a fresh year-to-day low in reaction to US President Donald Trump's trade tariffs, which lifts bets that the Federal Reserve (Fed) will resume its rate-cutting cycle soon. This, along with the anti-risk flow, triggers a steep decline in the US Treasury bond yields and further undermines the buck. Read more...
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AUD/USD is back in the red, easing toward 0.6500 early Wednesday amid the mixed Chinese inflation data. The pair gives up the RBA's surprise on-hold decision-led uptick once again as Trump's planned tariffs on Copper act as a headwind for the resources-linked Aussie. The US Dollar resurgence also weighs on the pair ahead of Fed Minutes.
USD/JPY climbs above 147.00 on USD strength, US-Japan trade woes
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New US tariffs target Asia, but some countries stand to gain
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