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Indonesia News Portal for Traders | Financial & Business Updates

10 February 2025 08:17  |

GBP/USD Holds Below 1.2400 As US Dollar Strengthens

The GBP/USD pair weakened near 1.239 during Asian trading hours on Monday (10/2). The US dollar strengthened after US President Donald Trump promised reciprocal tariffs. The release of the US Consumer Price Index (CPI) for January will be in focus on Wednesday.

Trump said on Friday that he would announce reciprocal tariffs on Tuesday or Wednesday on countries that tax US imports, with the tariffs set to come into effect “almost immediately.”

Tariffs on UK goods exported to the US are likely to remain in place, although Trump said a deal “can be done.” Traders will be watching closely for developments surrounding further tariffs from Trump. Any signs of escalating trade war tensions could boost the safe-haven USD.

Expectations of further interest rate cuts by the Bank of England (BoE) could weaken the Pound Sterling (GBP). BoE Governor Andrew Bailey said that additional rate cuts should be expected but “we have to judge meeting by meeting how far and how quickly.” Bailey added during the press conference that economic activity is weakening and the job market is slowing. Markets are currently pricing in another 50 basis point (bps) rate cut in 2025.

Source: FXStreet

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