Pound Sterling slumps against the US Dollar, focus shifts to Fed monetary policy
The Pound Sterling (GBP) holds onto losses near its two-month low around 1.3350 against the US Dollar (USD) during the European session on Tuesday. The GBP/USD pair faces selling pressure as the US Dollar trades firmly after officials from the United States (US) and the European Union (EU) approved a trade agreement ahead of the August 1 tariff deadline over the weekend.
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades close to a weekly high near 98.70.
The appeal of the US Dollar has strengthened as the US-EU trade deal has put fears of disruption in Washington’s supply chain to an end, given the scale of business between both economies.
Meanwhile, investors await the outcome of high-level trade talks between the US and China, which are taking place in Stockholm from Monday. A report from the South China Morning Post (SCMP) showed on Monday that Washington and Beijing are expected to “extend their tariff truce for 90 days”, which will expire on August 12.
Source: FXstreet
