The GBP/USD cross is under fresh selling pressure. It traded through the 1.3550 level and below during Tuesday’s European trading session. The pair is retreating from its 39-month peaks. This dramatic decline is a testament to the changing tides in today’s forex market. Analysts note that the pair is struggling with a lackadaisical rebound in the US Dollar. This new reality has deeply affected short-term trading trends.
Market attention is going from trade talks back to US economic fundamentals. Aggressive price traders remain very fixated on the Senate discussion about former President Trump’s tax increase on capital gain realizations. This legislative debate could have major influences on the USD and by extension the GBP/USD currency pair.
GBP/USD tumbles down through 1.3550, looking ahead to US data, Senate tax bill discussion- www.fxstreet.com/currencies/gbpusd
Traders are rethinking their strategy after the pound’s sharp drop in GBP/USD prices yesterday. They are looking to major US economic data releases for direction on their next moves. The next few reports should provide more illuminating snapshots into the health of the US economy. They can shape future direction of the currency pair.
Since then, gold prices have plummeted, and are currently down to $3,300. All this decline is occurring as a risk-on impulse that’s increasing demand for the USD. Gold prices are down today for a second day in a row. Much of this decline is attributable to US fiscal worries and increasing anticipation of a Federal Reserve rate cut. These factors are almost certain to constrain the USD’s upside potential and gold’s downside price discovery.
Gold price drops to $3,300 amid risk-on impulse, reviving USD demand – www.fxstreet.com/markets/commodities/metals/gold
These recent trends in GBP/USD and gold prices are further illustrations of an anxious macro market that’s reacting to fundamental economic data. Traders are watching the laser beams as they sift through US fiscal measures. Specifically, they are interested in how these strategies might affect the future value of their currency.