Pound Holds Gains on UK Fiscal Stability

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GBP/USD held around 1.3660 during Friday’s Asian session, marking a second day of consolidation as the dollar weakened on caution over Trump’s planned tariffs. Trump said he would start sending tariff letters Friday, targeting ten countries with rates of 20–30%. The pound was supported after PM Starmer backed Chancellor Reeves, easing market concerns over a possible replacement with looser fiscal policies.

The BoE is expected to cut rates in August, likely to 4%, following dovish signals from officials, including Governor Bailey, who said rates should gradually decline as inflation eases.

Resistance is at 1.3700, while support holds at 1.3600.

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