The GBP/USD pair saw some selling pressure, dipping near 1.3425 during the early Asian trading hours on Tuesday, as a modest rebound in the US Dollar (USD) weighed on the British Pound. Investors are awaiting a speech by Bank of England (BoE) official Dave Ramsden for potential market-moving signals.
The US Dollar gained strength against the Pound following easing concerns about trade tensions. On Friday, China announced it would exempt certain US imports from its 125% tariffs, fueling optimism that the trade conflict between the US and China may soon be resolved. However, China’s swift dismissal of US President Donald Trump’s claim that trade talks were progressing tempered these hopes.
Additionally, US Agriculture Secretary Brooke Rollins confirmed on Sunday that the Trump administration is engaged in daily talks with China over tariffs. Rollins further mentioned that discussions with other nations regarding trade deals are nearing completion.
On the GBP front, persistent expectations of a 25 basis point (bps) rate cut by the BoE in its May meeting continue to weigh on the currency. Market participants will closely monitor Ramsden’s speech later on Tuesday, as any dovish remarks could further pressure the British Pound in the short term.
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