GBP/USD weakens to around 1.3425 in Tuesday’s early Asian session.
Improved optimism over trade tension supports the US dollar and creates a headwind for the pair.
Traders brace for the BoE’s Dave Ramsden speech later on Tuesday.
The GBP/USD pair attracts some sellers to near 1.3425 during the early Asian trading hours on Tuesday, pressured by a modest rebound of US Dollar (USD). Investors await a speech by Bank of England (BoE) official Dave Ramsden for fresh impetus.
The Greenback strengthens against the Pound Sterling (GBP) as the fears of trade tensions ease. China exempted some US imports from its 125% tariffs on Friday, raising hopes that the trade war between the US and China is nearing an end, although China quickly knocked down US President Donald Trump's assertion that trade talks between the two countries were underway.
US Agriculture Secretary Brooke Rollins said on Sunday that the Trump administration is having daily conversations with China over tariffs. Rollins further stated that there were ongoing talks between the two nations and that trade deals with other nations were “very close.”
On the GBP’s front, firm expectations that the BoE will cut interest rates by 25 basis points (bps) to 4.25% in the May meeting continue to weigh on the GBP. Investors will be closely watching a speech by Bank of England (BoE) official Dave Ramsden later on Tuesday. Any dovish comments could weaken the Cable in the near term.
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