- The GBP/USD exchange rate faced downward pressure due to positive US Purchasing Managers’ Index data and increasing investor assurance in the US Dollar, spurred by indications of potential trade tension reductions.
- President Trump’s remarks, clarifying he does not plan to dismiss Federal Reserve Chairman Powell, calmed market anxieties, bolstering risk sentiment and the USD.
- The British Pound is maintaining its position above a crucial support level at 1.3250; a decline below this point might pave the way for a test of 1.3152 (50-day Simple Moving Average).
The Pound Sterling experienced a decline against the US Dollar on Wednesday, but showed a slight recovery after hitting a four-day low of 1.3230. Market participants appeared reassured by the news that US President Donald Trump, despite his dissatisfaction with Fed Chairman Powell, does not intend to remove him from his position. Currently, the GBP/USD pair is trading at 1.3289, reflecting a decrease of 0.28%.
GBP/USD touches a 4-day low, then partially recovers as Trump suggests Powell will remain in post and potential China tariff reductions are anticipated
Market confidence strengthened following the conclusion of the North American trading day, when Trump stated that he has no plans to dismiss Powell. This development provided a boost to global equities and contributed to the appreciation of the US Dollar.
The GBP/USD recently saw an upward correction following reports that the White House is weighing the possibility of lowering tariffs on Chinese goods to ease trade tensions, according to the Wall Street Journal. While this news was welcomed by traders, the currency pair remains under pressure due to renewed conviction in the strength of the US Dollar.
