Pound Sterling remains stronger above 1.3500 following Trump’s State of the Union
GBP/USD remains in the positive territory for the fourth successive session, trading around 1.3510 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) remains subdued following US President Donald Trump’s first State of the Union (SOTU) address of his second administration before a joint session of Congress.
Trump said he has delivered a “turnaround for the ages,” highlighting lower inflation and touting his administration’s economic record. He also pointed to efforts to curb illegal immigration and the flow of fentanyl across the border. Trump warned he could impose higher tariffs on countries that “play games” with recent trade agreements after the Supreme Court blocked several of his broad global levies. Read more…
GBP/USD stalls as Bailey flags services inflation
GBP/USD was essentially flat on Tuesday, drifting around 1.3500 in a quiet session. The pair has pulled back sharply from its late-January high near 1.3870 and is now consolidating in a tight range around the 50-day Exponential Moving Average (EMA), with a cluster of mixed candles over the past two weeks suggesting indecision after the sell-off.
The Bank of England (BoE) held rates at 3.75% in February by a narrow 5-4 vote, with Governor Andrew Bailey casting the deciding vote to hold. Testifying before parliament’s Treasury Committee on Tuesday, Bailey said a March rate cut is “a genuinely open question,” noting that services price inflation came in at 4.4% in January, well above the BoE’s 4.1% forecast. Chief Economist Huw Pill echoed the caution, warning against being “beguiled” by headline inflation falling toward the 2% target. UK data has otherwise been encouraging, with February’s PMI showing private-sector activity expanding at its fastest pace since April 2024 and January retail sales beating expectations. Read more…
GBP/USD rises past 1.3500 as Bailey hints at easing despite firmer US Dollar
The Pound Sterling (GBP) trades higher on Tuesday even though the Bank of England (BoE) Governor opened the door for further easing, amid uncertainty over US trade policies. At the time of writing, GBP/USD exchanges hands near the 1.3530 figure, up 0.30%
Market mood has improved, yet fears of AI disruption keep software stocks pressured as the Anthropic AI model can modernize software that runs in most ATMs worldwide, powered by IBM. In the FX space, the US Dollar (USD) bounced off weekly lows, turning positive according to the US Dollar Index (DXY). Read more…
