Forex analysis - 2025-06-04 (04:49)

Forex data GBP/USD
Date : 2025-06-04
Opening : 1.35128
Higher up: 1.35445
Below: 1.35118
Closing : 1.35160

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:
Forex market analysis for the GBP/USD pair on 4 June 2025 is based on several key elements, including observed price movements, major economic news and short-term forecasts.

### Analysis of price movements

- Open:** 1.35128
- Higher:** 1.35445
- Lower:** 1.35118
- fence:** 1.35160

The GBP/USD pair showed relatively low volatility during the session, with a slight increase from the opening price. The difference between the day's high and low is modest, indicating a day of low volatility.

### Current trend

The current trend appears to be slightly bullish, although the close near the opening level suggests a degree of uncertainty or consolidation. This could be the result of external factors influencing both currencies.

### Impact of economic news

1. **Dollar Index Rebounds Amidst Legal Whiplash For Trade Tariffs:** The rebound in the US Dollar Index could signal a consolidation in the dollar, potentially impacting the GBP/USD pair by putting downward pressure on the GBP if the dollar continues to strengthen.

2. **Mixed Sentiment In World Markets:** Mixed sentiment in world markets reflects global economic uncertainty, which may lead investors to adopt a cautious approach. This could lead to increased volatility in the days ahead.

3. **Gold Price Surges on Trump Tariff Threat, Fed Rate Cut Speculation:** The rise in the price of gold, often seen as a safe haven, may indicate increased risk aversion among investors. Speculation that the Fed will cut interest rates may also weaken the dollar in the long term, although this depends on whether such policies are confirmed.

### Short-term forecasts

- Bullish scenario:** If speculation of a rate cut by the Fed materialises, this could weaken the dollar, causing GBP/USD to rise. In addition, any improvement in the UK economic outlook could strengthen the pound.

- Bearish scenario:** On the other hand, if the dollar index continues to strengthen on the back of favourable US trade policies or a lower probability of a rate cut, the pair could come under downward pressure.

- Consolidation scenario:** Given the relatively low volatility observed, the pair could continue to trade in a narrow range, pending further economic or political indications.

In conclusion, investors should keep a close eye on political and economic developments, particularly the Fed's decisions and developments in US trade policy, to better anticipate future movements in GBP/USD.