GBP/USD eases post-BoE rate cut as Greenback flows rise
GBP/USD kicked off Thursday with an early spat of gains, fueled by the Bank of England (BoE) delivering the market a widely-anticipated quarter point rate cut. However, bullish momentum behind the Pound Sterling evaporated quickly as markets pivoted toward trade headlines from the United States (US). Investors are hoping for quick progress on the US making trade deals that will allow it to climb down from its own self-imposed tariff stance.
Market sentiment pinned firmly on the high side and bolstered the US Dollar (USD) after the Trump administration announced an impending trade deal between the US and the United Kingdom (UK) that will see the UK avoid steep “reciprocal” tariffs on an ongoing basis, which are due to come back into effect on July 9 after President Trump temporarily walked back imposing his own ‘Liberation Day’ tariffs. A sweeping 10% tariff is still set to be imposed on all imports into the US from the UK, which could crimp market sentiment in the near future. Read more...
GBP/USD climbs past 1.33 on BoE hawkish cut, US-UK reaching trade deal
The Pound Sterling (GBP) advanced during the North American session after the Bank of England (BoE) reduced borrowing costs on a 7-2 vote split, with two members voting to hold rates unchanged. Positive United States (US) jobs data failed to propel the US Dollar (USD), while a trade deal between the US and the UK is a tailwind for GBP/USD, which trades at 1.3300, up 0.15%.
GBP/USD rises after BoE’s three-way vote signals caution and Trump-Starmer pact adds bullish tailwind. The BoE reduced rates to 4.25% on Thursday, as expected, in what was perceived as a hawkish cut due to the three-way vote split: two members voting for a 50-basis-point cut, five for a 25-basis-point cut, and two more to keep rates at 4.50%. This propelled Cable higher although an announcement of a trade deal between the US and the UK supported GBP/USD in remaining above the 1.33 handle. Read more...
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EUR/USD: Bears await break below 1.1200 ahead of US-China joint statement
EUR/USD attracts some sellers on Monday, though it lacks bearish conviction. A break below 200-period SMA on H4 should pave the way for deeper losses. Any attempted move up is likely to confront a stiff barrier near the 1.1250 region.
GBP/USD trades with negative bias below 1.3300 amid modest USD strength
GBP/USD attracts some sellers as the US-China trade deal eases US recession fears and boosts the USD. The US-UK trade agreement and the BoE’s cautious tone support the GBP and limit losses for the major. Traders now look forward to speeches from BoE officials and FOMC members for some meaningful impetus.
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Ripple turns green amid waning exchange inflows
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Why the UK-US trade deal won’t herald a wider tariff climbdown
For Britain, the UK-US deal secures lower tariffs without compromising forthcoming UK-EU talks. And for the US, it signals to investors that the administration is prepared to be flexible on tariffs. But we're sceptical that the deal will translate into a much wider de-escalation in US tariff policy.
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