GBPUSD:
The Pound-Dollar pair is losing ground after more than 1 percent gains in the previous session, trading near 1.2300 during Asian hours on Tuesday. The pair faced trouble as the US Dollar (USD) regained ground after recent losses in the previous session, buoyed by news that President Donald Trump is set to direct federal agencies to review tariff policy and assess the United States’ trade relations with Canada, Mexico and China.
According to the CME FedWatch tool, traders expect the U.S. Federal Reserve (Fed) to keep lending rates in the current 4.25 percent to 4.50 percent range for the next three meetings. However, investors suggest that the Trump administration’s policies could trigger inflationary pressures, which could limit the Fed to just one additional rate cut.
The Pound Sterling (GBP) strengthened as demand for UK bonds increased following the release of weaker than expected UK retail sales data for December. Monthly retail sales fell 0.3%, contrary to expectations of a 0.4% rise, which was expected to follow a 0.1% increase in November.
Trading recommendation: Watch the level of 1.2300, if the level is fixed above consider Buy positions, if the level rebounds consider Sell positions.
Origin: FreshForex
