- Analytics
- News and Tools
- Market News
- GBP/USD falls to near 1.2300 as traders adopt caution ahead of Trump’s economic policies
GBP/USD falls to near 1.2300 as traders adopt caution ahead of Trump’s economic policies
- GBP/USD depreciates following news that President Trump intends to direct federal agencies to review tariff policies.
- Traders speculate that Trump’s policies could lead to inflationary pressures, possibly restricting the Fed to just one more rate cut.
- UK gilts demand rose following weaker-than-expected Retail Sales data for December.
GBP/USD loses ground after registering more than 1% gains in the previous session, trading around 1.2300 during the Asian hours on Tuesday. The pair faced challenges as the US Dollar (USD) regained ground after recent losses in the previous session, supported by news that President Donald Trump intends to direct federal agencies to review tariff policies and evaluate the United States' trade relationships with Canada, Mexico, and China.
The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, trades around 108.30 after trimming recent gains. The US Dollar receives downward pressure as the US Treasury yields on 2-year and 10-year bonds remain subdued at 4.23% and 4.54%, respectively, at the time of writing.
According to the CME FedWatch tool, traders anticipate that the US Federal Reserve (Fed) will maintain borrowing rates within the current range of 4.25%-4.50% over the next three policy meetings. However, investors speculate that policies under Trump’s administration could trigger inflationary pressures, potentially limiting the Fed to only one additional rate cut.
The Pound Sterling (GBP) strengthened as demand for United Kingdom (UK) gilts increased following weaker-than-expected UK Retail Sales data for December. Monthly Retail Sales contracted by 0.3%, contrary to expectations of a 0.4% growth, which was anticipated to follow the 0.1% increase in November.
The unexpected drop in UK Retail Sales has reinforced dovish expectations for the Bank of England (BoE). Analysts at Oxford Economics forecast that the BoE may reduce interest rates by 100 basis points (bps), bringing them down to 3.75% by the end of the year.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.25% | 0.25% | -0.33% | 0.77% | 0.40% | 0.36% | 0.05% | |
| EUR | -0.25% | 0.00% | -0.50% | 0.52% | 0.15% | 0.11% | -0.20% | |
| GBP | -0.25% | -0.01% | -0.57% | 0.51% | 0.14% | 0.11% | -0.20% | |
| JPY | 0.33% | 0.50% | 0.57% | 1.08% | 0.71% | 0.66% | 0.36% | |
| CAD | -0.77% | -0.52% | -0.51% | -1.08% | -0.36% | -0.40% | -0.71% | |
| AUD | -0.40% | -0.15% | -0.14% | -0.71% | 0.36% | -0.04% | -0.34% | |
| NZD | -0.36% | -0.11% | -0.11% | -0.66% | 0.40% | 0.04% | -0.31% | |
| CHF | -0.05% | 0.20% | 0.20% | -0.36% | 0.71% | 0.34% | 0.31% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
