The Great British Pound Sterling continues to slide versus the US Dollar. As of writing, the GBP/USD pair is trading at 1.2911, 0.17% lower on the day. Heading into Monday’s North American session, the pair has resumed its downward slide, approaching 1.2900. The start of the week had the GBP/USD trading in a tight range around the 1.2950 mark. Concerns about US President Donald Trump’s proposed new tariffs are escalating. This uncertainty continues to weigh on market sentiment with continued risk aversion holding back any traction for the pair.
Market participants are keenly monitoring these developments as we count down to US April 2 Liberation Day. President Trump is expected to announce more tariffs on Wednesday. This decision is influencing the performance of the Pound Sterling against the US Dollar. Fears of retaliatory tariffs are pushing up demand for the safe-haven US Dollar. As a consequence the Pound is nose-diving.
The GBP/USD pair’s performance is being influenced by the market’s anticipation of President Trump’s tariff announcement. Traders braced for the economic fallout of these tariffs. At the same time, the US Dollar continues to strengthen as a safe-haven currency. As a result, this hostile dynamic is making the Pound Sterling lose even more value against its American counterpart the USD.
Indeed, the extended trade war between the United States and other countries has made investors even more risk-averse. The uncertainty is being compounded by the expected tariff announcement on “Liberation Day” (April 15th). Consequently, investors are getting spooked and are flocking to the relative safety of the US Dollar. This change in market sentiment is reflected in the GBP/USD pair’s trading pattern today.