GBP/USD drifts lower below 1.3450 ahead of US GDP release
The GBP/USD pair trades in negative territory around 1.3435 during the early European session on Thursday. The Greenback strengthens against the Pound Sterling (GBP) after the US trade court blocks US President Donald Trump’s sweeping tariffs. The preliminary reading of the US Gross Domestic Product (GDP) report for the first quarter (Q1) will be the highlight later on Thursday.
The summary of the May meeting of the Federal Open Market Committee (FOMC) suggested that uncertainty about the economic outlook has increased further. Federal Reserve (Fed) officials said meeting its dual goals of full employment and low inflation has been complicated due to policy uncertainty. Fed policymakers emphasized the need to keep interest rates on hold for some time, as policy shifts in the US cloud the economic outlook. Read more…
GBP/USD hits a second day of downside ahead of key US data
GBP/USD pared further gains on Wednesday, stumbling for a second straight session and easing back below 1.3500 after a failed attempt to recapture 1.3600 earlier this week. Sterling markets are pulling back from the top end of a bull run that dragged Cable into multi-year highs, however momentum still favors Pound Sterling bidders.
The Federal Reserve’s (Fed) latest Meeting Minutes from the Federal Open Market Committee’s (FOMC) rate meeting on May 6-7 revealed that the Fed’s wait-and-see approach has deep roots. Policymakers at the latest Fed meeting noted that the US Dollar’s (USD) safe-haven status has taken a hit recently. They cautioned that a more “durable shift” in the Greenback’s status could have lasting impacts on the US economy. Read more…
GBP/USD looks upward after Fed Meeting Minutes show growing caution
The Federal Reserve’s (Fed) latest Meeting Minutes from the Federal Open Market Committee’s (FOMC) rate meeting on May 6-7 revealed that the Fed’s wait-and-see approach has deep roots. Policymakers at the latest Fed meeting noted that the US Dollar’s (USD) safe-haven status has taken a hit recently. They cautioned that a more “durable shift” in the Greenback’s status could have lasting impacts on the US economy.
Nearly all FOMC members at the May rate meeting agreed that inflation risks could prove to be more “persistent than expected”. With Fed staff directly citing tariff impacts as a key driver in the FOMC’s weakening outlook on the US economy, the FOMC has laid decaying US economic conditions and the hazy outlook on inflation and growth at the feet of the Trump administration’s whipsaw tariff policies. Read more…
