GBP/USD moves back closer to 1.3500 mark amid broadly weaker USD

• GBP/USD kicks off the new week on a positive note amid the emergence of fresh USD selling.
• Fed rate cut bets and US fiscal concerns weigh on the USD amid trade-related uncertainties.
• A weaker risk tone could limit losses for the safe-haven buck and cap the upside for the pair.

The GBP/USD pair regains positive traction at the start of a new week amid renewed US Dollar (USD) selling, though it remains below the 1.3500 psychological mark during the Asian session.

The Personal Consumption Expenditures (PCE) Price Index released on Friday pointed to further easing inflationary pressures in the US and bolstered the case for more policy easing by the Federal Reserve (Fed). Adding to this, concerns about the worsening US fiscal condition, fueled by the passage of US President Donald Trump's "Big Beautiful Bill," exert fresh downward pressure on the USD.

The British Pound (GBP), on the other hand, continues with its relative outperformance on the back of expectations that the Bank of England (BoE) would pause at its next meeting on June 18 and take its time before lowering borrowing costs further. This, in turn, is seen as another factor lending support to the GBP/USD pair. However, a weaker risk tone limits USD losses and might cap the pair.

The global risk sentiment took a hit after Trump stated on Friday that China is not committed to fulfilling the terms of the trade agreement reached in Switzerland. This comes on top of persistent geopolitical risk stemming from the Russia-Ukraine war and conflicts in the Middle East, which temper investors' appetite for riskier assets and could offer some support to the safe-haven Greenback.

Traders now look forward to this week's important US macro releases scheduled at the start of a new month, starting with the ISM Manufacturing PMI later this Monday. Apart from this, Fed Chair Jerome Powell's appearance will influence the USD price dynamics and provide some impetus to the GBP/USD pair.