GBP/USD SLIPS BENEATH 1.3300 AS USD GAINS ON POWELL RELIEF AND TRADE OPTIMISM
GBP/USD SLIPS BENEATH 1.3300 AS USD GAINS ON POWELL RELIEF AND TRADE OPTIMISM
The British pound weakened against the US dollar on Wednesday, April 23, 2025, falling below the 1.3300 level.
This decline was attributed to renewed strength in the US dollar, driven by easing concerns over Federal Reserve leadership and positive developments in US-China trade relations.
President Donald Trump stated he has "no intention" of firing Federal Reserve Chair Jerome Powell, alleviating market concerns about potential interference with the Fed's independence.
This reassurance led to a rebound in the US dollar, which had previously weakened due to fears over monetary policy autonomy.
The US dollar found additional support from upbeat economic indicators, including stronger-than-expected Purchasing Managers' Index (PMI) data.
The S&P Global Composite PMI for the US showed business activity expanded at a faster pace in April, signaling resilience in the economy.
Treasury Secretary Scott Bessent expressed optimism about reaching a tariff agreement with China, suggesting potential de-escalation in trade tensions.
This development improved investor sentiment and contributed to the strengthening of the US dollar.
The GBP/USD pair slipped below the 1.3300 level, reaching a four-day low of 1.3230.
While the pound showed some recovery afterward, the overall trend remained downward, reflecting the strengthening of the US dollar.
