GBP/USD FALLS NEAR 1.2300 AHEAD OF TRUMP’S ECONOMIC POLICIES

Tina Collins

22 Jan 2025 — 1 min read

GBP/USD FALLS NEAR 1.2300 AHEAD OF TRUMP’S ECONOMIC POLICIES

GBP/USD drops after President Trump announced plans to review US tariff policies.

Traders worry that Trump’s policies might increase inflation and limit the Fed to just one more rate cut.

UK demand for gilts rises following weak Retail Sales data for December.

After gaining over 1% previously, GBP/USD falls to around 1.2300 during the Asian trading hours.

The US Dollar strengthens after recent losses, supported by news of Trump’s trade policy review with Canada, Mexico, and China.

The US Dollar Index (DXY) is at 108.30, with US Treasury yields on 2-year and 10-year bonds staying low at 4.23% and 4.54%.

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