GBP/USD Holds Above 1.3500 as US Dollar Weakens on “Sell America” Sentiment

GBP/USD Holds Above 1.3500 as US Dollar Weakens on “Sell America” Sentiment

By tredu.com 6/4/2025

Tredu

UK inflation outlookUS Dollar weaknessGBP/USD
GBP/USD Holds Above 1.3500 as US Dollar Weakens on “Sell America” Sentiment

GBP/USD Maintains Strength Above 1.3500 as BoE and US Data Drive Direction

Sterling Benefits as Dollar Softens Under “Sell America” Theme

The GBP/USD pair continues to climb modestly, currently trading around 1.3520 during early Wednesday Asian trading. The US Dollar remains under pressure as investor sentiment leans into the "Sell America" theme due to ongoing tariff tensions and slowing US economic momentum.

Strong US JOLTS Data Offers Temporary Dollar Support

April’s JOLTS Job Openings surprised to the upside, printing 7.39 million versus expectations of 7.1 million. This slight positive was not enough to shift the overall bearish tone around the USD.

📌 Explore more: How US Labor Data Impacts the Dollar

BoE’s Bailey Signals Cuts, but Policy Split Emerges

During the Monetary Policy Report Hearings, BoE Governor Andrew Bailey reiterated the central bank’s stance that rate cuts are more likely than hikes, yet he acknowledged that uncertainty remains high.

While some BoE members fear inflation persistence, others worry about the economic impact of holding rates too high for too long. This policy divergence suggests upcoming moves will be data-driven, with the June inflation and jobs reports now in sharp focus.

📌 Related post: BoE Policy Outlook – What Traders Should Know

US-China Trade Talks in the Spotlight

Investors are also watching for the outcome of a possible US-China meeting, as President Trump and President Xi Jinping are expected to resume discussions amid accusations of tariff breaches. Any progress could stabilize sentiment and briefly lift the USD.

📌 Trending: Geopolitical Risk and Its Impact on FX

Suggested Internal Links:

  • GBP/USD Live Chart and Forecast
  • BoE’s Monetary Policy Roadmap
  • Upcoming Economic Data to Watch
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