GBP/USD Stays Above 1.3500 as US Dollar Gets Weaker
On June 4, 2025, the British Pound (GBP) stayed strong against the US Dollar (USD), trading above the 1.3500 level. This is happening because the US Dollar is under pressure due to the growing “Sell America” trend. Many investors are pulling money out of US assets because they are worried about the country’s economic decisions.
One of the main reasons for this pressure is President Donald Trump’s move to double tariffs on steel and aluminum imports to 50%. These new tariffs are now in effect and have raised fears of a trade war. China has already said it will respond. These actions are making investors nervous, as they could slow down the global economy and increase inflation. That’s why the US Dollar is falling.
On the other hand, the British Pound is doing better. The UK economy grew by 0.5% in February, which was better than expected. Retail sales are also holding strong. The Bank of England recently kept interest rates steady at 4.25%, which has also helped support the Pound.
Impact:
If the US continues with these trade policies, the Dollar might stay weak. This could help GBP/USD stay above 1.3500 or even move higher. But any good news from the US might change this trend.