Photo by Colin Watts on Unsplash 

GBP/USD rose for a second straight day on Tuesday, lifted by a general weakening in global Greenback markets. The US Dollar (USD) continues to take a beating as investors grow weary of United States (US) President Donald Trump targeting Federal Reserve (Fed) Chair Jerome Powell, and fears of the Fed’s political autonomy being undermined are kicking the supports out from beneath the Greenback.

President Trump continues to campaign for the removal of Fed Chair Powell. Lacking the legal power to directly interfere with Fed staff, the Trump administration is actively trying to build a case out of anything that would give them an avenue to replace the Fed head. The Trump team is looking for a Fed pick that will be more friendly to sharply lowering interest rates, even as inflationary pressures from tariffs continue to simmer away near the surface.

Wednesday brings a relative lull on the data docket with little to no meaningful schedule releases, leaving headlines to drive market flows. Cable traders will be hunkering down for the wait to Thursday, when back-to-back Purchasing Manager Indexes for both the UK and the US will drop. Manufacturing and Services PMI components are expected to tick slightly higher on both sides of the Atlantic.

(Click on image to enlarge)

GBP/USD price forecast

Another step higher for the Cable puts GBP/USD bids back above the 1.3500 handle for the first time in a little over a week. The Greenback’s near-term weakness has been a boon for Pound Sterling bulls, drawing a clean technical bounce from a rising trendline in the 1.3400 region.

GBP/USD daily chart

(Click on image to enlarge)

More By This Author: