Starting off the week, the British Pound is making some headway against the US Dollar. This uptick follows reports from the Washington Post indicating President-elect Trump’s team is mulling over tariffs targeting specific sectors. However, Trump later walked back on these claims, labeling the article as inaccurate. Consequently, the GBP/USD displays a seesaw pattern, fluctuating within the 1.2450 – 1.2550 range as traders digest the mixed signals.
As we delve into the European trading hours on Monday, the GBP/USD pair nudges higher, reaching around 1.2440. Despite this recovery, traders remain cautious due to the Federal Reserve’s hawkish undertones. Market participants are eagerly awaiting Fed Governor Lisa Cook’s speech later today, hoping it sheds light on this year’s US interest rate projections.
At the onset of the week, the GBP/USD encounters resistance as it tries to build on last Friday’s modest gains. Hovering just above the 1.2400 level, the pair sits precariously near its lowest mark since April 2024, recorded last week. The prevailing strength of the US Dollar, however, casts doubt on any significant upward movement and perpetuates a downtrend that’s been in motion for over three months.
