Pound Sterling holds onto gains against USD as investors gauge Trump’s tariff plans
The Pound Sterling (GBP) ticks lower against the US Dollar (USD) in Wednesday’s London session but still holds onto Tuesday’s gains above the key support level of 1.2300.
The GBP/USD pair edges lower as the US Dollar recovers slightly, with the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, edging higher from its two-week low of 107.90.
However, the Greenback could face selling pressure as its safe-haven demand has moderated. The USD’s safe-haven appeal has diminished as the tariff plans disclosed by the United States (US) administration under President Donald Trump are less fearful than what investors had anticipated in the election campaign.
Trump said on Tuesday that he would impose 10% tariffs on China on February 1, the same day he vowed to slap 25% tariffs on other North American economies. In the election campaign, Trump threatened to impose 60% tariffs on China.
Source: FXStreet
