Forex analysis - 2025-06-03 (18:53)

Forex data GBP/USD
Date : 2025-06-03
Opening : 1.35421
Higher up: 1.35591
Below: 1.34914
Closing : 1.35260

Economic news :
Dollar Index Rebounds Amidst Legal Whiplash For Trade Tariffs
Mixed Sentiment In World Markets
Gold Price Surges on Trump Tariff Threat, Fed Rate Cut Speculation

Detailed analysis:
**Comprehensive analysis of the GBP/USD Forex market**.

**Current trends:**

The GBP/USD pair showed a slight decline during the June 3, 2025 session, closing at 1.35260 after opening at 1.35421. Intraday movements indicate moderate volatility, with a high of 1.35591 and a low of 1.34914. The current trend appears to be slightly bearish, which could be attributed to a strengthening US dollar.

**Impact of Economic News:**

1. **Dollar Index Rebounds Amidst Legal Whiplash For Trade Tariffs:** The rebound in the dollar index, due to the turmoil over trade tariffs, has likely contributed to the downward pressure on GBP/USD. A stronger dollar makes sterling relatively weaker, negatively impacting the pair.

2. **Mixed Sentiment In World Markets:** Mixed sentiment in world markets reflects general uncertainty which could contribute to risk aversion, pushing investors towards safe havens such as the dollar.

3. **Gold Price Surges on Trump Tariff Threat, Fed Rate Cut Speculation:** The rise in gold prices, often an indicator of economic uncertainty, in response to Trump's tariff threats and speculation about a Fed rate cut, indicates a possible flight to safety. This could strengthen the dollar if investors anticipate a more accommodative monetary policy from the Fed, putting further pressure on the pound.

**Short-term forecast:**

1. **Bullish scenario:** If speculation about a Fed rate cut materialises, this could weaken the dollar and provide support for GBP/USD. Furthermore, if trade tensions ease, this could also strengthen the pound.

2. **Bearish scenario:** If political and economic uncertainty persists, particularly with the threat of tariffs, the dollar could continue to strengthen, exerting further downward pressure on the GBP/USD. What's more, if UK economic data is disappointing, this could accentuate the downward trend.

3. **Neutral scenario:** Against a backdrop of mixed sentiment and economic uncertainty, the pair could stabilise around current levels, with short-term sideways movements until further economic or political news provides clearer direction.

In conclusion, the GBP/USD pair is currently being influenced by external factors, mainly linked to US economic and political developments. Traders should keep a close eye on Fed announcements and developments regarding tariffs to better anticipate the pair's future movements.