Created
: 2025.07.08
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
GBP/USD pauses losses as Trump's tariff threats increase risk aversion
World FX news
Breaking news
GBP/USD pauses losses as Trump's tariff threats increase risk aversion
2025.07.08 08:38
2025.07.08 08:38
- GBP/USD caught a foothold on Monday, halting a near-term pivot into the low side.
- Fresh trade war rhetoric from the Trump administration has sparked fresh risk aversion in global markets.
- The July 9 tariff deadline has already been kicked down the road, but fresh tariffs now loom ahead.
GBP/USD shed some weight on Monday, trimming further into the low side and adding onto near-term losses as Pound Sterling bulls take a breath. Losses were contained in early-week trading; however, a fresh bout of tariff threats from US President Donald Trump has crimped investor risk appetite, curbing topside market flows and sparking a fresh risk-off push into the US Dollar.
The Trump administration hit the ground running this week, pushing back its own self-imposed July 9 deadline for the restart of wide-ranging reciprocal tariffs that were initially announced and then immediately delayed in early April. Despite yet another pivot on "firm" deadlines for tariffs from the Trump team, President Trump has announced a fresh batch of additional tariffs, adding double-digit tariff levels to take effect on April 1 alongside the suspended reciprocal tariffs.
The economic data docket remains fairly limited this week. Market focus will be trained firmly on trade war rhetoric from the Trump administration, though the Federal Reserve's (Fed) latest Meeting Minutes, which will be released on Wednesday, will draw some attention from traders looking to further gauge how near (or far) the Fed is from cutting interest rates.
GBP/USD price forecast
Despite a near-term rotation into intraday weakness, GBP/USD continues to hold onto the high end. The pair is trading well above the 50-day Exponential Moving Average (EMA) near 1.3465, and an immediate price floor is priced in from the 1.3600 handle. Long-term bullish trendlines are still holding firm, but Cable could be due for a steeper correction as technical oscillators ease back from overbought territory.
GBP/USD daily chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.07.08
Related articles
NZD/USD recovery stalls below 0.5925 as the US Dollar picks up from lows
15 minutes agoPound Sterling holds gains against US Dollar as traders raise Fed interest rate cut bets
35 minutes agoSilver Price Forecast: XAG/USD jumps to near $37.30 as US bond yields slump
38 minutes agoUSD/CAD holds below 1.3800 as weaker US job data fuels Fed rate cut expectations
2025.08.04 15:59EUR/GBP tumbles to near 0.8700 as traders await BoE rate decision
2025.08.04 15:11Forex Today: US Dollar struggles to rebound as NFP data revive September rate cut bets
2025.08.04 15:03
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
NZD/USD recovery stalls below 0.5925 as the US Dollar picks up from lows
The New Zealand Dollar treads water above 0.5900 on Monday's early European session as the market sobers up to the weak US employment figures seen on Friday, and the US Dollar and US Treasury yields pick up from Friday's lows.
New
2025.08.04 17:01Pound Sterling holds gains against US Dollar as traders raise Fed interest rate cut bets
The Pound Sterling (GBP) holds onto Friday's gains around 1.3300 against the US Dollar (USD) during the European trading session on Monday.
New
2025.08.04 16:41Silver Price Forecast: XAG/USD jumps to near $37.30 as US bond yields slump
Silver price (XAG/USD) extends its Friday's recovery move to near $37.30 on Monday. The white metal strengthens as United States (US) bond yields decline sharply, following the release of the softer-than-projected Nonfarm Payrolls (NFP) data for July.
New
2025.08.04 16:37WTI climbs to near $67.00 despite persistent concerns over Oil oversupply
West Texas Intermediate (WTI) Oil price rebounds after two days of losses, trading around $66.90 per barrel during the early European hours on Monday.
New
2025.08.04 16:37USD/CAD holds below 1.3800 as weaker US job data fuels Fed rate cut expectations
The USD/CAD pair trades on a softer note around 1.3780 during the early European trading hours on Monday. The Greenback edges lower against the Canadian Dollar (CAD) due to the weaker-than-expected US July job data.
New
2025.08.04 15:59EUR/GBP tumbles to near 0.8700 as traders await BoE rate decision
The EUR/GBP cross loses momentum to near 0.8715, snapping the two-day losing streak during the early European trading hours on Monday. Investors will closely monitor the Bank of England (BoE) interest rate decision on Thursday.
New
2025.08.04 15:11Crude Oil price today: WTI price bullish at European opening
West Texas Intermediate (WTI) Oil price advances on Monday, early in the European session. WTI trades at $66.70 per barrel, up from Friday's close at $66.64.
New
2025.08.04 15:04Forex Today: US Dollar struggles to rebound as NFP data revive September rate cut bets
Here is what you need to know on Monday, August 4:
New
2025.08.04 15:03FX option expiries for Aug 4 NY cut
FX option expiries for Aug 4 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
2025.08.04 14:47AUD/JPY recovers further from multi-week low, climbs to 95.80 amid a broadly weaker JPY
The AUD/JPY cross attracts some buyers during the Asian session on Monday and reverses a part of Friday's slump to the 95.00 neighborhood, or a nearly four-week low. Spot prices climb to a fresh daily peak, around the 95.80 region in the last hour, and draw support from a combination of factors.
New
2025.08.04 14:42Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
