The GBP/USD pair hovered near the 1.2350 mark on Wednesday, pressured by renewed market concerns over former U.S. President Donald Trump’s proposed tariff hikes. These comments have heightened fears of potential trade disruptions, prompting a cautious market sentiment and limiting gains for the British pound.
The dollar held firm as investors gravitated toward its safe-haven appeal amid uncertainties surrounding U.S. trade policies. Trump’s remarks about increasing tariffs on major trading partners added to global economic concerns, further strengthening the U.S. dollar. Meanwhile, the pound remained vulnerable as markets digested mixed UK economic data, which provided limited support for the currency.
Weaker risk sentiment and worries about escalating trade tensions have kept the GBP/USD pair under pressure. Analysts noted that ongoing concerns over U.S. policy changes are likely to weigh on risk-sensitive currencies like the pound, especially in the absence of significant UK data releases.
The GBP/USD’s performance near 1.2350 will likely depend on further developments in U.S. trade policy and any potential UK economic updates. Traders are also watching for additional cues from central banks, which could influence the pair’s trajectory in the near term.
