GBP/USD Weekly Outlook: Pound Sterling buyers return with a bang
The Pound Sterling (GBP) jumped back into the game against the US Dollar (USD), allowing the GBP/USD pair to stage a solid comeback from five-week troughs.
In doing so, GBP/USD recorded over 1.5% gain over the week, rejoicing in the USD’s demise across the board. Markets smashed US assets such as Wall Street stocks, the Greenback and US government bonds on increased economic and financial stability concerns under US President Donald Trump’s administration. Read more…
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GBP/USD holds steady near 1.3100, bulls have the upper hand amid bearish USD
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The GBP/USD pair edges higher at the start of a new week and trades just below the 1.3100 mark during the Asian session, well within striking distance of Friday’s swing high. Moreover, the bearish sentiment surrounding the US Dollar (USD) suggests that the path of least resistance for spot prices remains to the upside.
The initial market reaction to US President Donald Trump’s decision last week to pause sweeping reciprocal tariffs for 90 days turned out to be short-lived amid heightened concerns over a US recession on the back of the escalating US-China trade war. China’s 84% tariffs on US goods took effect on Thursday, while Trump hiked duties on Chinese imports to an unprecedented 145%. Given that the US still imports several hard-to-replace materials from China, the developments weaken confidence in the American economy. This, in turn, dragged the USD Index (DXY), which tracks the Greenback against a basket of currencies, to its lowest level since April 2022 and continues to act as a tailwind for the GBP/USD pair. Read more…
