GBP/USD extends the rally to near 1.3350 on softer US Dollar

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • GBP/USD attracts some buyers to around 1.3350 in Monday’s early Asian session. 

  • The UK hopes to strike a deal with Trump after he imposed 10% tariffs on most imports of British goods to the US. 

  • Fed's Powell said the US central bank remains in wait-and-see mode. 


The GBP/USD pair extends its upside to near 1.3350 during the early Asian session on Monday. The uptick of the major pair is bolstered by the softer US Dollar (USD) broadly as traders become increasingly confident that the economic policies of US President Donald Trump will lead the economy to a recession. 


UK Prime Minister Keir Starmer and US President Donald Trump discussed "ongoing and productive" trade talks in their first call since Trump imposed tariffs on UK goods. According to a Downing Street official, Starmer emphasized his commitment to "free and open trade and the importance of protecting the national interest." 


Starmer is seeking to reach an agreement with the US after Trump announced 10% tariffs on UK goods and a 25% rate on imports of automobiles, steel, and aluminum. Meanwhile, the optimism surrounding the US-UK trade talks continues to underpin the GBP against the Greenback in the near term. 


Nonetheless, the hawkish remarks from the US Federal Reserve (Fed) could lift the USD and cap the upside for the major pair. Fed Chair Jerome Powell said last week that escalating tariffs could fuel inflation while undermining growth, complicating the path for interest rate decisions. Powell noted, “For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”  

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
GBP/USD falls to near 1.3400 following mixed UK PMI dataGBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
Author  FXStreet
6 hours ago
GBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
placeholder
EUR/USD briefly dips as Eurozone PMIs unexpectedly declineEUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
Author  FXStreet
6 hours ago
EUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
placeholder
Forex Today: Attention turns to May PMI data from major economiesThe trading action in financial markets remain relatively quiet early Thursday as investors gear up for preliminary Purchasing Managers Index (PMI) data from Germany, the Eurozone, the UK and the US.
Author  FXStreet
7 hours ago
The trading action in financial markets remain relatively quiet early Thursday as investors gear up for preliminary Purchasing Managers Index (PMI) data from Germany, the Eurozone, the UK and the US.
placeholder
US Dollar Index stays above 99.50 ahead of PMI data, voting on Trump tax cut billThe US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, holds gains after registering losses in the previous three successive sessions.
Author  FXStreet
7 hours ago
The US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, holds gains after registering losses in the previous three successive sessions.
placeholder
USD/CHF extends downside to near 0.8250, US PMI data in focusThe USD/CHF pair extends the decline to around 0.8250 during the early European session on Thursday. The Greenback weakens against the Swiss Franc (CHF) due to US fiscal concerns. Traders will take more cues from the advanced US S&P Purchasing Managers Index (PMI) for May. 
Author  FXStreet
8 hours ago
The USD/CHF pair extends the decline to around 0.8250 during the early European session on Thursday. The Greenback weakens against the Swiss Franc (CHF) due to US fiscal concerns. Traders will take more cues from the advanced US S&P Purchasing Managers Index (PMI) for May. 
Real-time Quote