GBP/USD falls to near 1.3550 amid rising economic concerns in United Kingdom

• GBP/USD depreciates as the US Dollar gains ground due to evolving monetary policy signals by Fed officials.
• Fed's Goolsbee does not support the view that the Fed should cut interest rates to reduce the cost of government debt.
• The FPC committee stated that there remains a high risk of sharp declines in risky asset prices.

GBP/USD continues its losing streak for the sixth consecutive day, trading around 1.3560 during the Asian hours on Friday. The pair depreciates as the US Dollar (USD) extends its gains due to evolving monetary policy signals by the Federal Reserve's (Fed) officials.

Federal Reserve Bank of Chicago President Austan Goolsbee said late Thursday that he does not support the arguments that the US central bank should cut rates to make government debt cheaper, the mandate is on jobs and prices.

The Federal Open Market Committee (FOMC) Minutes from the June 17-18 meeting, released on Wednesday, indicated that policymakers largely maintained a wait-and-see stance regarding future interest rate decisions.

However, the downside of the GBP/USD pair could be limited as the US Dollar may lose its ground due to the introduction of new tariff actions by US President Donald Trump. President Trump announced on Thursday a 35% tariff rate for goods imported from Canada, effective August 1. He further stated that the European Union (EU) would receive a letter notifying them of new tariff rates "today or tomorrow."

The GBP/USD pair also faces challenges as the Pound Sterling (GBP) loses ground due to rising economic concerns in the United Kingdom (UK). The Bank of England (BoE) warned of multiple risks in its mid-year Financial Policy Committee (FPC) report on Wednesday.

FPC committee said, "The risk of sharp falls in risky asset prices, abrupt shifts in asset allocation, and a more prolonged breakdown in historical correlations remains high." The committee highlighted geopolitical tensions, global fragmentation of trade and financial markets, and pressures on sovereign debt as responsible for escalating economic risks in the UK.