- The GBP/USD quotes with a slight positive bias on Tuesday in the middle of a continuous sales pressure of the USD.
- Fed rate cuts bets, US tax concerns and a positive risk tone weigh on the dollar.
- The bullies expect the statements of the governor of BOE, Bailey, and the president of the Fed, Powell, to obtain a new impulse.
The GBP/USD pair advances during the Asian session on Tuesday and currently trades around the 1,3740 zone, just below its highest level since October 2021 reached last week in the middle of a US dollar (USD) bassist.
The USD (DXY) index, which tracks the dollar against a foreign exchange basket, slides to its lowest level since February 2022 amid the expectations that the Federal Reserve (Fed) resumes its cycle of feat cuts in the near future. The operators are currently valuing a lower probability that the next reduction of Fed rates occurs in July and they see a probability of approximately 74% of a rate cut as soon as in September. The bets were reaffirmed by the US PERSONAL CONSUMPTION EXPENSECTION Report (PCE) on Friday, which showed that consumer spending decreased unexpectedly in May.
In addition, concerns about the worsening of the US fiscal condition keep the USD’s boundions on the defensive. The Senate approved little procedural vote to open the debate on the “One Big Beautiful Bill” Trump’s Integral. The bill would add around 3.3 billion dollars to the federal deficit during the next decade. In addition, the prevailing risk aversion environment contributes to the bearish feeling around the secure shelter dollar. This, in turn, is considered a key factor that acts as a tail wind for the GBP/USD torque and supports the perspectives of a new short -term upward movement.
However, operators seem reluctant to carry out aggressive bets and choose to wait for the appearance of Andrew Bailey, from the Bank of England (BOE), and Jerome Powell, president of the Fed, in the ECB forum on Central Banking 2025 in Sintra. Investors will seek clues about the policy perspective of the Central Bank. Apart from this, the US macroeconomic data – the ISM manufacturing PMI and the job offers and labor rotation survey (Jolts) – should provide a significant impulse to the GBP/USD torque. However, the aforementioned fundamental background favors the bulls.
US dollar last 7 days
The lower table shows the percentage of change of the US dollar (USD) compared to the main currencies last 7 days. US dollar was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.78% | -1.60% | -1.67% | -0.93% | -1.79% | -1.97% | -2.36% | |
| EUR | 1.78% | 0.15% | 0.10% | 0.86% | -0.00% | -0.62% | -0.58% | |
| GBP | 1.60% | -0.15% | -0.06% | 0.71% | -0.15% | -0.77% | -0.88% | |
| JPY | 1.67% | -0.10% | 0.06% | 0.75% | -0.16% | -0.34% | -0.83% | |
| CAD | 0.93% | -0.86% | -0.71% | -0.75% | -0.87% | -1.47% | -1.58% | |
| Aud | 1.79% | 0.00% | 0.15% | 0.16% | 0.87% | -0.62% | -0.73% | |
| NZD | 1.97% | 0.62% | 0.77% | 0.34% | 1.47% | 0.62% | -0.11% | |
| CHF | 2.36% | 0.58% | 0.88% | 0.83% | 1.58% | 0.73% | 0.11% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
