GBP/USD is experiencing sustained buying interest for the second consecutive session as the USD weakens to a new year-to-date low. Concerns regarding a potential US economic slowdown, driven by tariff policies, are increasing expectations of Federal Reserve rate cuts, thereby exerting downward pressure on the USD. A breakout from a multi-week consolidation range suggests the potential for continued appreciation in the GBP/USD pair. The pair has advanced to its highest level since October 2024, currently trading above the 1.3050 level, reflecting a 0.40% daily increase. This upward momentum is primarily attributed to USD weakness, as evidenced by the USD Index (DXY) reaching a new year-to-date low. This decline is correlated with trade tariff concerns and subsequent speculation regarding renewed Fed rate cuts, further contributing to a decrease in US Treasury bond yields and overall USD depreciation.
