GBP/USD remains stable in the midst of a thin trade for holidays, with concerns about the United Kingdom debt in the focus

• The sterling pound remains stable about 1,3650 in the midst of festive trade conditions in the US.
• The tax concerns of the United Kingdom resurface after the government reverses £ 5 billion in planned well -being cuts.
• The US Tariff term of July 9 is coming, with the United Kingdom steel and aluminum sectors still at risk.

The sterling pound (GBP) is at a dead point against the US dollar (USD) on Friday, since the pound is under renewed pressure amid persistent fiscal concerns. A combination of cautious risk feeling, data from non -agricultural payrolls (NFP) of the United States stronger than expected and political uncertainty in the United Kingdom are keeping the defensive pound, with the GBP/USD Pair fighting for extending their recent profits.

The GBP/USD torque shows little directional movement, quoting around 1,3650 during American trade hours. With US markets closed by the independence day holiday, trade conditions remain thin, limiting volatility and new impulse in the pair.

Concerns about public finances in the United Kingdom are weighing on the pound. Foreign Minister Rachel Reeves faces pressure after the government reversed the planned well -being cuts, which would have saved around 5 billion. This has generated doubts about how the government will manage its budget.

At the beginning of the week, the yields of the United Kingdom bonuses fired, with the yields at 10 years by briefly touching 4.7%, the greatest increase from the crisis of the mini-presupposed of 2022. The public support of Prime Minister Keir Starmer A Reeves helped stabilize the bond markets, with the yields to 10 years, backing to 4.5%, offering a temporary support to the pound sterling However, with public debt about 100% of the Gross Domestic Product (GDP) and the fiscal margin reducing, the markets expect more tax increases in the next budget while the government strives to restore confidence.

According to the Office of National Statistics (ONS), the Net Debt of the Public Sector (PSND) was equivalent to 96.4% of GDP at the end of May 2025.

Commercial tensions are also in the focus, with investors closely observing the term of July 9 for the United States to finish a new round of global tariffs. The president of the USA, Donald Trump, said that his administration will probably begin to send tariff letters to the commercial partners from Friday, with the new US tariffs on their exports that will enter into force as of August 1. “They will vary in value from perhaps 60 or 70% tariffs to tariffs of 10 and 20%,” he said.

Although the United Kingdom has recently ensured a partial relief through a bilateral commercial agreement that reduced tariffs on car and aerospace exports, key sectors such as steel and aluminum remain exposed. Persistent uncertainty is adding a layer of geopolitical risk to global markets.

Looking ahead, market attention is moving towards the person in charge of the Bank of England (BOE), Alan Taylor, who is scheduled to speak later today at 14:00 GMT. Taylor has previously expressed concern about the economic perspectives of the United Kingdom, warning that the anticipated “soft landing” is increasingly at risk. It has suggested the need for up to five rate cuts in 2025, one more than the markets currently anticipate, citing the weakening of domestic demand and the persistent winds against global trade. Investors will be closely observing any new signal on the monetary policy perspectives of the BOE.