GBP/USD falls to near 1.2400 due to risk-off sentiment following Trump tariff threats
The post GBP/USD falls to near 1.2400 due to risk-off sentiment following Trump tariff threats appeared on BitcoinEthereumNews.com.
GBP/USD extends its decline as risk aversion rises, driven by renewed tariff threats from US President Donald Trump. Trump reiterated plans to impose a flat 25% import tax on all goods entering the US from Canada and Mexico. The Pound Sterling struggles as traders expect the BoE to continue its rate-cut cycle in February. GBP/USD continues its losing streak for the fourth successive session, trading around 1.2420 during the Asian hours on Friday. This downside is attributed to the improved US Dollar (USD) amid increased risk aversion following renewed tariff threats from US President Donald Trump. President Trump reiterated plans late Thursday to impose a flat 25% import tax on all goods entering the US from Canada and Mexico, citing concerns over fentanyl. The first wave of tariffs on both countries is set to take effect on February 1, according to Reuters. Additionally, Trump hinted at the possibility of imposing tariffs on Canadian and Mexican Oil exports. He also reaffirmed his threat on X (formerly Twitter) to levy 100% tariffs on BRICS nations if they attempt to introduce an alternative currency to challenge the US dollar in international trade. The US Dollar Index (DXY), which measures the US Dollar’s value against six major currencies, trades above 108.00 at the time of writing. The Greenback strengthened after the US Federal Reserve (Fed) adopted a cautious tone regarding its policy decision in January. The US Federal Reserve held its overnight borrowing rate steady in the 4.25%-4.50% range at its January meeting on Wednesday, as widely expected. This decision followed three consecutive rate cuts since September 2024, totaling a full percentage point. During the press conference, Fed Chair Jerome Powell emphasized that the central bank would need to see “real progress on inflation or some weakness in the labor market” before considering any…
Filed under: News - @ January 31, 2025 4:23 am