GBP/USD retreats from YTD high past 1.34 on Fed turmoil
- Trump’s effort to oust Powell revives Fed credibility fears, limiting GBP/USD upside despite softer Dollar
- UK inflation and jobs data boost BoE cut bets; markets fully price May cut, 85 bps expected in 2025
- US Richmond Fed Index drops to -13, highlighting worsening industrial outlook and macro uncertainty
The Pound Sterling reverses its course after reaching a daily high of 1.3423 due to concerns over the Federal Reserve (Fed) independence, spurred by US President Donald Trump's harsh comments against Fed Chair Jerome Powell. At the time of writing, the GBP/USD is trading at 1.3383, up 0.17%.
GBP/USD retreats to 1.3354 as Fed independence fears and weak UK data drive mixed sentiment
Market participants continued to digest White House Economic Adviser Keving Hassett's comments about US President Donald Trump looking for ways to oust Powell. This pushed the GBP/USD to re-test the current year-to-date (YTD) peak before falling below 1.3400.
Softer than expected UK inflation data and a weak labor market had increased the chances that the Bank of England (BoE) could cut rates at the upcoming May meeting. The swaps markets had fully priced in that cut, and 85 basis points towards year-end.
Data-wise, the UK docket is empty, but the Richmond Fed Manufacturing Index deteriorated further in the US from -4 to -13, its lowest level since November.
GBP/USD Price Forecast: Technical outlook
From a technical perspective, the uptrend remains intact. Nevertheless, buyers' failure to achieve a daily close above 1.34 could pave the way for a deeper pullback, which could send prices lower. The first support was seen at 1.3300, followed by April’s 7 low of 1.3202.
A breach of 1.3400 will sponsor the YTD high of 1.3423, with key resistance lying above at 1.35.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | -0.06% | -0.14% | -0.04% | 0.34% | 0.01% | 0.40% | |
| EUR | -0.24% | -0.31% | -0.40% | -0.31% | 0.05% | -0.24% | 0.15% | |
| GBP | 0.06% | 0.31% | -0.09% | -0.01% | 0.36% | 0.07% | 0.46% | |
| JPY | 0.14% | 0.40% | 0.09% | 0.09% | 0.45% | 0.22% | 0.59% | |
| CAD | 0.04% | 0.31% | 0.00% | -0.09% | 0.36% | 0.06% | 0.43% | |
| AUD | -0.34% | -0.05% | -0.36% | -0.45% | -0.36% | -0.31% | 0.09% | |
| NZD | -0.01% | 0.24% | -0.07% | -0.22% | -0.06% | 0.31% | 0.40% | |
| CHF | -0.40% | -0.15% | -0.46% | -0.59% | -0.43% | -0.09% | -0.40% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).