GBP/USD Moves Higher On Trump’s Powell Warning
The GBP/USD pair traded in the positive territory around 1.3370 during the early Asian session on Tuesday (4/22). Fears of a slowdown in the United States (US) and concerns over the independence of the Federal Reserve (Fed) dragged the US Dollar (USD) lower and created a tailwind for the major currency pair.
US President Donald Trump slammed Fed’s Powell for continuing to favor a “wait and see” mode on monetary policy until there is greater clarity on how new tariffs will shape the economic outlook. Trump warned in a Truth Social post that the US economy will slow down unless Powell cuts interest rates soon.
Meanwhile, the US Dollar Index (DXY), a measure of the USD’s value against a basket of six major currencies, is currently trading near 98.30, the lowest since March 2022. Rising uncertainties surrounding Trump’s tariffs and escalating trade tensions between the US and China are weakening the USD across the board. On the other hand, weaker UK Consumer Price Index (CPI) inflation data for March and global uncertainties have paved the way for a rate cut by the Bank of England (BoE) at its May policy meeting. Financial markets are now betting on a rate cut from the BoE at its May meeting, pricing in an 86% probability, according to LSEG data. This, in turn, could weigh on the Pound Sterling (GBP) against the Greenback.
Source: FXStreet
