GBP/USD Slides Below 1.3450 as US Trade Court Blocks Trump Tariffs Ahead of GDP Release

GBP/USD Slides Below 1.3450 as US Trade Court Blocks Trump Tariffs Ahead of US GDP Release

The GBP/USD currency pair dropped to around 1.3435 during Thursday’s early European session. The decline is primarily driven by the US federal court's suspension of President Trump’s reciprocal tariffs, which boosted the US Dollar (USD) against the Pound Sterling.

US Federal Court Suspends Trump’s Reciprocal Tariffs

A US federal trade court ruled that President Trump lacked unilateral authority to impose sweeping tariffs on imports from nearly every country, halting the "Liberation Day" tariffs. This decision supports the USD and weighs on GBP/USD.

Market Awaits US Q1 GDP Data

Investors are closely monitoring the upcoming US Gross Domestic Product (GDP) Annualized report for Q1, which could further influence USD strength and GBP/USD movements.

BoE Rate Cut Chances Diminish Amid Rising UK Inflation

Meanwhile, the possibility of additional Bank of England (BoE) rate cuts is fading amid increasing food inflation pressures in the UK, further weighing on the Pound.

Fed Policy Uncertainty Persists

The Federal Open Market Committee’s (FOMC) recent minutes highlighted growing policy uncertainty surrounding the US economic outlook. Fed officials agreed on a cautious approach, keeping interest rates on hold to navigate the challenging environment.

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• US GDP Report and Market Impact
• Bank of England Monetary Policy Update
• Forex Market Analysis: GBP/USD
• US Trade Policy and Tariff Developments