Pound Hits 1.37, Dollar Remains Under Pressure
GBP/USD rose slightly at the start of the week and briefly tested the 1.37 area for the first time since September. The US dollar remained on the defensive as market sentiment tended to be "sell the dollar," thus supporting the pound.
The market also continued to view the Trump administration's threat of new tariffs as a "bluff" that often ends in a softening. This time, the tariff issue resurfaced after the US threatened additional import duties on several European countries if they did not comply with Washington's demands regarding Greenland. This uncertainty made investors cautious, but actually put pressure on the greenback.
The biggest focus this week is on the Fed. Interest rates are expected to remain unchanged, but investors will be watching the tone of the central bank's statement: whether it signals a faster rate cut or not. The market is also awaiting news on the potential successor to Jerome Powell (whose term ends in May), as a new figure could influence the direction of policy—and if more dovish, the chances of a rate cut could increase. (asd)
Source: Newsmaker.id
