The GBP/USD concluded Monday’s trading with a decline of 0.13% as the Greenback rebounded, following US President Donald Trump’s softened stance on China over the weekend. As of the current, the pair is trading at 1.3333 as the Asian session on Tuesday commences.
GBP/USD experiences a decline of 0.13%, settling at 1.3333 as Trump moderates his stance on tariffs, alleviating concerns regarding the trade war. Fed’s Anna Paulson indicates a preference for gradual rate reductions as the labor market shows signs of softening. The UK jobs report and remarks from BoE Governor Bailey will influence the next directional shift for the Pound.
> Sterling experiences a decline as the easing of US–China tensions bolsters the Greenback in the context of a prolonged government shutdown : The daily recap indicates a reversal in price action, following last Friday’s announcement where Trump threatened to impose 100% additional tariffs on Chinese products. This came in response to China imposing duties on US vessels and implementing export controls on rare earths. Despite the circumstances, Trump conveyed that everything would be “fine,” a sentiment later reiterated by Treasury Secretary Bessent, who mentioned that the US and Chinese Presidents are scheduled to meet in South Korea towards the end of the month. With tensions easing, the Dollar experienced a rally. The DXY, which monitors the dollar’s performance against a basket of six currencies including the Pound, has increased by 0.40% to reach 99.24. The US government shutdown has now reached its thirteenth consecutive day, prompting traders to focus on the resolution of the shutdown and remarks from Federal Reserve officials. Philadelphia Fed’s Anna Pausol expressed a dovish stance, indicating that indications of weakness in the labor market imply that the Fed ought to prioritize concerns regarding the jobs market over combating inflation. She supports incremental reductions this year and the following year, as she perceives the policy to be somewhat restrictive.
Upcoming, the schedule in the UK will include employment statistics. The ILO Unemployment Rate for the last three months leading to September is anticipated to hold steady at 4.7%, while Average Earnings, both Including and Excluding Bonuses, are also projected to remain constant for the same timeframe. In August, the Employment Change was reported at 232K. In addition, market participants will focus on the remarks from Bank of England MPC member Alan Taylor and Governor Andrew Bailey as they come through the news channels. In the United States, the economic calendar will include addresses from Fed Governor Michelle Bowman, who has adopted a dovish stance since mid-July, along with Fed Chair Powell and Governor Christopher Waller. Later, Boston Fed Susan Collins will be making headlines.