GBP/USD steadies near 1.2600, downside appears due to Trump’s tariff threats
GBP/USD holds ground after registering losses in the previous two successive days, hovering around 1.2590 during the Asian session on Thursday. However, the pair faces pressure as concerns over tariffs from US President Donald Trump lent support to the US Dollar (USD). Trump has confirmed that a 25% tariff on pharmaceutical and semiconductor imports will take effect in April. Additionally, he reaffirmed that auto tariffs will remain at 25%, further escalating global trade tensions.
Market participants are now focused on key US economic data, including weekly Initial Jobless Claims, the CB Leading Economic Index, and the Philly Fed Manufacturing Index, set to be released during the North American session. Read more…
GBP/USD drops below 1.2600 as US Dollar gains on risk aversion
The Pound Sterling (GBP) retreated below 1.2600 during the North American session as housing data in the United States (US) was mixed, while inflation in the United Kingdom (UK) hit its highest level since March 2024. Despite this, the GBP/USD pair trades at 1.2585, down 0.21%.
Risk aversion spurred demand for haven assets like the Greenback after US President Donald Trump threatened to apply 25% tariffs on autos, pharmaceuticals and chips. In the meantime, Housing Starts in the US tumbled in January due to weather disruptions, dropping from 1.515 million to 1.366 million, or a 9.6% plunge. Read more…
