The post Pound Sterling corrects further against US Dollar as Fed maintains restrictive policy stance appeared on BitcoinEthereumNews.com.

The Pound Sterling declines to near 1.2920 against the US Dollar as the Fed is not in a rush to move to interest rate cuts. The Fed sees high uncertainty over the US economic outlook amid new policies from US President Trump. BoE Bailey is confident that interest rates are on a gradually declining path. The Pound Sterling (GBP) extends correction to near 1.2920 against the US Dollar (USD) in European trading hours on Friday. The GBP/USD pair weakens as the US Dollar extends recovery amid growing expectations that the Federal Reserve (Fed) will not cut interest rates soon. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, gathers strength to break above the key resistance of 104.00. The Fed expressed that it is in no hurry to move to interest rate cuts after leaving them unchanged in the range of 4.25%-4.50% on Wednesday. The comments from the Fed regarding holding interest rates at their current levels were based on “unusually elevated” uncertainty over the United States’ (US) economic outlook due to the implementation of significant policy changes under the administration of US President Donald Trump. Fed Chair Jerome Powell said in the press conference on Wednesday that tariff policies by US President Trump could push inflation higher and weigh on growth in the near term. According to the CME FedWatch tool, the Fed is almost certain to keep interest rates unchanged in the May meeting, but there is a 73% chance the central bank can cut them in June. Globally, investors’ risk appetite is expected to remain capped as President Trump is poised to impose reciprocal tariffs on April 2, which means equal tariffs for the same products imported and exported by the US with his trading partners. Such a scenario will be unfavorable…

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Filed under: News - @ March 21, 2025 8:25 am