GBP/USD remains below 1.3600 due to risk-off mood, UK fiscal concerns
GBP/USD extends its losing streak, trading around 1.3580 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) gains ground amid increased risk aversion. On Tuesday, US President Donald Trump told reporters at a White House cabinet meeting to impose a 50% tariff on Copper imports but he did not say when the tariff would take effect, per Reuters.
President Trump expressed his intention to strengthen domestic Copper production and reduce dependence on foreign supplies, as the US currently imports nearly half of its metal, primarily from Chile. The new tariff aligns red metal with the existing 50% duties on steel and aluminum, intensifying trade tensions and adding to volatility in the metals market. Read more…
GBP/USD coils as investors await tariff clarity again
GBP/USD churned the charts near 1.3600 as the market grapples with inconsistent policy messaging on President Donald Trump’s whipsaw tariff policies. Reciprocal tariffs announced and immediately delayed in early April have been pushed back from July 9 to August 1, and in the course of 24 hours President Trump has announced that further delays or tariff suspensions both can and cannot be expected.
Adding further fuel to the tariff fire, President Trump announced a new 50% tariff on all copper imports into the US, which he insisted will take effect “today” on Tuesday. Trump also reiterated additional double-digit tariffs on all goods from a handful of countries, including across-the-board 25% import taxes on all goods from South Korea and Japan. It remains unclear how the Trump administration intends to shift those costs onto the target foreign countries instead of US consumers and importers, who traditionally bear the cost of tariffs and import taxes. Read more…
