GBP/USD Drops Below 1.2400 On Trump Tariff News
GBP/USD came under renewed bearish pressure and declined to its weakest level since April below 1.2400. At the time of press, the pair was trading at 1.2365, losing 0.9% on the day.
Trump tariff headline boosts USD
Citing four sources familiar with the matter, CNN reported that US President-elect Donald Trump is considering declaring a national economic emergency to allow for a new tariff program. This headline triggered a flight to safety and allowed the US Dollar (USD) to outperform its rivals. As of writing, the USD Index was up 0.5% on the day near 109.20.
Reflecting the negative shift in risk mood, US stock index futures turned negative on the day.
The ADP Employment Change report from the US will be watched closely. Market participants expect private sector payrolls to rise by 140,000 in December following the 146,000 increase recorded in November. Later in the American session, the Federal Reserve will release the minutes of the December policy meeting.
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