GBP/USD Rises for Third Day as USD Falls on Hopes of Last-Minute Trade Deal

GBP/USD Climbs as USD Weakens on Trade Deal Optimism

GBP/USD extended its bullish streak on Wednesday, pushing closer to the 1.3600 mark as traders eyed a potential last-minute trade agreement that could defuse looming tariff threats.

USD Faces Broad Sell-Off as Deadline Nears

The US Dollar (USD) is under intense pressure, dropping across major currency pairs as markets speculate that the Trump administration may backtrack on its aggressive tariff stance ahead of the August 1 reciprocal tariff deadline. This broad-based weakness in the Greenback gave Pound Sterling (GBP) bulls added momentum, sending GBP/USD higher for the third consecutive day.

Trade Deal Hopes Fuel Sentiment

While official confirmation is lacking, there’s growing talk of trade deals in progress, especially with Japan and the European Union (EU). Reports suggest the US was considering a 15% two-way tariff on Japanese imports, and although EU deal rumors persist, key Trump officials have denied any such developments.

Despite the mixed signals, traders are pricing in a potential last-minute breakthrough that could avert damaging tariffs and support risk-on sentiment in global markets.

PMI Data in Focus

Looking ahead to Thursday, both the UK and US will release Manufacturing and Services PMI data. Analysts expect a slight uptick in both regions for June, which could further influence GBP/USD price action.

What to Watch on Tredu

• GBP/USD Technical Analysis
• Forex Calendar: Upcoming PMI Releases
• What a Trade Deal Could Mean for Markets