GBP/USD depreciated as Trump expanded tariffs

GBP/USD extends losses to near 1.2350 amid risk-off mood following Trump’s tariffs

GBP/USD continues its downward trend for the fourth consecutive day, trading near 1.2350 during Asian hours on Tuesday. The pair weakens amid escalating trade tensions after US President Donald Trump imposed a flat 25% tariff on steel and aluminum imports on Monday, removing all exemptions and nullifying previous trade agreements with key United States’ (US) allies. The move is intended to support struggling domestic industries but increases the risk of a broader trade conflict.

Trump’s proclamations raised the US aluminum tariff from 10% to 25%, eliminating country-specific exemptions, quota deals, and numerous product-specific exclusions for both metals. A White House official confirmed the new tariffs will take effect on March 4, with potential further measures targeting microchips and vehicles in the coming weeks. Read more…

GBP/USD sheds weight for a third straight day, central bank heads up next

GBP/USD sunk for a third straight trading day on Monday, kicking off the new trading week on the backfoot and slipping back below the 1.2400 handle, shedding one-third of one percent in the process. US President Donald Trump renewed his vigor to kick off a US vs everybody else trade war late Monday, slapping a 25% tariff on all imported steel and aluminum into the US.

Bank of England (BoE) Governor Andrew Bailey is due to give a keynote speech on Tuesday. Cable traders will be keeping an eye on the BoE head following the UK central bank’s rate cut last week, looking to nail down any hints of forward guidance on where the BoE could be heading next. Federal Reserve (Fed) Chair Jerome Powell follows up with an appearance of his own, testifying before the US Senate Banking Committee on Tuesday. Read more…