The pound sterling wins against the US dollar while Trump warns about an economic slowdown

• The sterling pound demonstrates firmness against the US dollar about 1,3400 while Trump seeks to fire Powell from the Fed for not cutting interest rates.
• The US dollar is the main victim of the dispute between Trump and Powell.
• Investors expect the BOE to cut interest rates in May.

The sterling pound (GBP) shows fortress near its maximum of three years around 1,3425 against the US dollar (USD) in the European session on Tuesday. The GBP/USD torque is expected to see more rise as the USD continues to weaken due to the attack of the president of the United States (USA), Donald Trump, to the independence of the Federal Reserve (FED) for not reducing interest rates.

The US dollar index (DXY), which tracks the value of the dollar against six main currencies, seeks temporary support after printing a new minimum of three years about 98.00.

On Monday, the US president, Trump, again criticized the president of the FED, Jerome Powell, for supporting an approach of “waiting and seeing” on interest rates and warned that the economy could face shock waves if monetary policy is not flexible. “There may be a deceleration of the economy unless Mr. too late, a great loser, lowers interest rates, now,” Trump said through a truthsocial publication.

Last week, Donald Trump threatened to say goodbye Jerome Powell for maintaining a restrictive position on the monetary policy perspective. Trump said: “I’m not happy with him. If I want him to leave, he will leave very fast, believe me.” The participants of the financial market saw the event as an attack on the “autonomous” status of the FED, whose decisions cannot be influenced by political operations.

This led investors to reevaluate the status of safe refuge of the US dollar, which had already been vulnerable due to tariff policies in constant change of Donald Trump. His decision to impose reciprocal tariffs from the expected and a sudden advertisement of a 90 -day pause in them forced the operators to doubt the credibility of Trump’s policy objectives, affecting the US dollar and US assets.

Daily summary of market movements: the sterling pound will be influenced by the preliminary data of the United Kingdom PMI

• The sterling pound demonstrates a mixed performance in front of its main peers on Tuesday, since investors are cautious about how the Bank of England (BOE) will shape the monetary policy perspective under the threat of Trump’s international policies.
• The operators have become increasingly confident that the BOE could cut interest rates in the May policy meeting amid the ongoing global economic tensions. There is a great possibility that the United Kingdom has a commercial agreement with Washington after the Trump administration imposed 10% reciprocal tariffs and 25% levies on steel and foreign cars. However, the main threat to the United Kingdom is the intense competition with other nations, assuming that Trump’s protectionist policies force their commercial partners to sell their products in other territories at lower prices.
• In the Financial Policy Committee (FPC) in April, the BOE warned that an important change in “global trade arrangements” could harm the “financial stability by depressing growth.”
• In addition, the data of the United Kingdom consumer (CPI) index for March, which were colder than expected, also increase the expectations that the BOE could reduce interest rates in May. Inflation in the services sector, which is closely followed by BOE officials, moderately grew 4.7% compared to an increase of 5% observed in February.
• Meanwhile, the person in charge of BOE policies, Megan Greene, warned in an interview with Bloomberg TV during the European negotiation hours that is still concerned about inflation in services, which points to pressures of persistent prices. On the impact of Trump’s tariffs, Greene said: “Tariffs actually represent a risk of disinflation than an inflationary risk.” He sees no shaking in the labor market. Market participants anticipated a slowdown in employment offers, since London’s decision to increase employers contributions to social security schemes has entered into force this month.
• This week, investors will focus on the publication of the preliminary data of the Purchase Management Index (PMI) of Global/CIPS S&P for April and the United Kingdom retail sales data for March, which will be published on Wednesday and Friday, respectively.

Technical Analysis: The sterling pound maintains profits about 1,3400

The pound sterling revisits the maximum of three years slightly above 1,3400 against the US dollar on Tuesday. The GBP/USD torque It could experience more rise since all exponential mobile socks (EMAS) of short -term short are upset.

The 14 -day relative force (RSI) index reaches overstrobra levels above 70.00. This indicates a strong bullish impulse, but investors must be prepared for some correction ahead.

Upwards, the psychological level of 1,3500 will be a key obstacle to the torque. Looking down, the maximum of April 3 around 1,3200 will act as an important support area.