GBP/USD holds steady near 1.3700 as markets assess Warsh’s Fed outlook
The GBP/USD pair trades on a flat note near 1.3695 during the early Asian session on Monday. Traders weigh what a Federal Reserve (Fed) under Kevin Warsh might look like. The US ISM Manufacturing Purchasing Managers Index (PMI) report will be published later on Monday.
US President Donald Trump named Kevin Warsh to lead the US central bank. Markets anticipate Warsh may lean toward a smaller Fed balance sheet and hold the interest rate higher for longer, which provides some support to the US Dollar (USD) against the Pound Sterling (GBP). Read more…
GBP/USD Weekly Forecast: Pound Sterling targets further gains as BoE, NFP loom
The Pound Sterling (GBP) accelerated its bullish momentum against the US Dollar (USD), with GBP/USD recording its highest level in four years near 1.3870 before experiencing a late pullback. Once again, it was all about the USD’s performance and GBP/USD dancing to its tune. Investors’ confidence in the US assets, such as the Greenback, US Treasury bonds, etc. continued to diminish amid US President Donald Trump’s erratic international policies and attacks on the Federal Reserve’s (Fed) independence.
Markets also remained wary and moved away from the USD ahead of the Fed policy announcement. Trump threatened over the weekend that he would impose a 100% tariff on Canada if it follows through on a trade deal with China. Moreover, the US currency faced headwinds from a weak Conference Board (CB) Consumer Confidence data released on Tuesday. US consumer confidence slumped to the lowest level in more than 11.5 years in January, to 84.5. Read more…
