Pound Sterling Price News and Forecast: GBP/USD gains ground amid improved investor confidence

GBP/USD rises above 1.2200 as Trump’s team considers a gradual increase in tariffs

GBP/USD breaks its five-day losing streak, rebounding from its 15-month low of 1.2099, recorded on Monday. The GBP/USD pair remains above 1.2200 during the Asian trading hours on Tuesday as the Pound Sterling (GBP) gains ground amid improved investor confidence.

The increased investor confidence is attributed to reports about US President-elect Donald Trump’s economic team considering a gradual increase in import tariffs boosted investor confidence. According to Bloomberg, Trump’s incoming administration is evaluating a phased approach to implementing tariffs, aiming to prevent a sharp rise in inflation while managing trade policy adjustments. Read more…

GBP/USD roils on Monday, testing new lows before recovering to flat

GBP/USD churned as markets rebalance their interest rate expectations through the rest of the year, sending Cable to a fresh 15-month low and tapping the 1.2100 handle before reversing the day’s losses and ending close to where it started at 1.2230.

It’s a quiet start to the week, but a crescendo of inflation data on both the US and UK side of the economic calendar will give traders plenty of material to chew through as they try to nail down a rate differential forecast heading through the first quarter. The Federal Reserve (Fed) is broadly expected to stand pat on interest rates through the first half of the year, while the Bank of England (BoE) is expected to have to choose between holding steady on interest rates in the face of still-high inflation, or risking an inflationary spark in order to shore up the UK’s floundering economy with further rate cuts. Read more…