GBP/USD Holds in the Green Zone, Dollar Wobbles on Tariffs
GBP/USD held in the green zone in early European trading on Monday (February 23rd), trading around 1.3520. This rebound came after the pound briefly fell to a four-week low last week, as markets became increasingly anxious over US tariffs and shifting global risk sentiment.
The main trigger today was the "tariff chaos" in the US. The US Supreme Court on Friday overturned President Donald Trump's massive global tariffs, but Trump responded with plans for a temporary 15% blanket tariff on imports, further increasing uncertainty about the direction of trade policy. This weakened the dollar broadly, giving the GBP room to strengthen.
In the UK, domestic data also provided support for the pound. The February flash PMI survey showed improving business activity (the highest composite since April 2024), while January retail sales surged—reflecting resilient consumption and improving momentum in early 2026. This combination helped the GBP remain relatively strong despite rising global volatility.
The next focus turns to US producer inflation data: the January PPI is scheduled for release on Friday, February 27, 2026. Market consensus is widely pointing to a 0.3% m/m increase for both headline and core; if the results are hotter than expected, the market could reduce expectations for a Fed rate cut—which could potentially boost the USD and restrain GBP/USD in the short term. (alg)
Source: Newsmaker.id
