GBP/USD Flat, Markets Await New Triggers
GBP/USD traded flat around 1.3500 on Monday as market participants digested the US Supreme Court's ruling on tariffs and awaited new catalysts. Sentiment was also dampened by concerns about US trade policy after President Donald Trump announced 15% global tariffs under Section 122, imposing tariffs based on the IEEPA that the government had scrapped.
In the UK, the Bank of England held interest rates at 3.75% earlier this month in a tight 5-4 vote, with four members supporting a cut. Coupled with UK inflation hovering around 3.0%, markets are increasingly pricing in a faster cut—making the March 19 decision the next crucial point for the pound.
Meanwhile, in the US, the Fed maintained interest rates at 3.50%–3.75%, and January inflation data hovering around 2.4% supports a "patient" stance. However, Trump's swift change in tariff policy boosted inflation and growth, while strengthening the position of the existing UK-US trade deal. The market is now focused on a series of speeches by Fed officials on Tuesday, including Waller and Cook, for any signs of a change in policy direction. (asd)
Source: Newsmaker.id
