GBP/USD consolidates around 1.3300 mark; downside potential seems limited
The post GBP/USD consolidates around 1.3300 mark; downside potential seems limited appeared on BitcoinEthereumNews.com. GBP/USD lacks any firm intraday direction and oscillates in a range at the start of a new week. The USD preserves last week’s recovery gains from a multi-year low and acts as a headwind. Bets for a less dovish BoE and hopes for a UK-US trade deal to limit the downside for the major. The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band around the 1.3300 round-figure mark during the Asian session. The US Dollar (USD) preserves last week’s recovery gains from a multi-year low amid the uncertainty over US-China trade talks, which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. US Treasury Secretary Scott Bessent said on Sunday that he did not know if US President Donald Trump had talked to Chinese President Xi Jinping. This keeps a lid on the optimism led by Trump’s assertion that tariff talks with China were underway and underpins the USD’s relative safe-haven status. The British Pound (GBP), on the other hand, draws some support from the upbeat domestic data released on Friday and hopes that the UK will strike a trade deal with the US soon. In fact, UK Retail Sales unexpectedly rose by 0.4% in March following the previous month’s downwardly revised growth of 0.7%. For the first quarter as a whole, retail sales rose by 1.6% – marking the strongest reading in four years and tempering market expectations for a more dovish Bank of England (BoE) rate-cut path going forward. In contrast, traders have been pricing in the possibility that the Federal Reserve (Fed) will resume its rate-cutting cycle in June and lower borrowing costs at least three times by the end of this year. This, along with concerns about the economic fallout…
The post GBP/USD consolidates around 1.3300 mark; downside potential seems limited appeared on BitcoinEthereumNews.com.
GBP/USD lacks any firm intraday direction and oscillates in a range at the start of a new week. The USD preserves last week’s recovery gains from a multi-year low and acts as a headwind. Bets for a less dovish BoE and hopes for a UK-US trade deal to limit the downside for the major. The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band around the 1.3300 round-figure mark during the Asian session. The US Dollar (USD) preserves last week’s recovery gains from a multi-year low amid the uncertainty over US-China trade talks, which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. US Treasury Secretary Scott Bessent said on Sunday that he did not know if US President Donald Trump had talked to Chinese President Xi Jinping. This keeps a lid on the optimism led by Trump’s assertion that tariff talks with China were underway and underpins the USD’s relative safe-haven status. The British Pound (GBP), on the other hand, draws some support from the upbeat domestic data released on Friday and hopes that the UK will strike a trade deal with the US soon. In fact, UK Retail Sales unexpectedly rose by 0.4% in March following the previous month’s downwardly revised growth of 0.7%. For the first quarter as a whole, retail sales rose by 1.6% – marking the strongest reading in four years and tempering market expectations for a more dovish Bank of England (BoE) rate-cut path going forward. In contrast, traders have been pricing in the possibility that the Federal Reserve (Fed) will resume its rate-cutting cycle in June and lower borrowing costs at least three times by the end of this year. This, along with concerns about the economic fallout…
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