**GBP/USD Exchange Rate Forecast: Pound Slips as Tariff Deadline Looms**
*An expanded rewrite inspired by content originally published by an Investing.com author.*
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The British pound (GBP) experienced downward pressure against the US dollar (USD) on Monday, as markets grew increasingly anxious over the approaching deadline for new tariffs between the United States and China. The looming threat of heightened trade tensions has spurred volatility in currency markets, exacerbating concerns over global economic stability and the future fortunes of the pound.
### Market Overview
At the start of the trading week, the GBP/USD pair was seen slipping from recent highs, extending losses triggered by a combination of external global risks and internal domestic uncertainties. The prospect of further tariffs between the world’s two largest economies has rattled investor confidence, sending ripples through foreign exchange markets.
**Key contributing factors:**
– Growing fears of a US–China tariff escalation
– Uncertainty over the UK’s post-Brexit trade landscape
– Mixed economic data releases from both the UK and the US
– Ongoing speculation about central bank monetary policy
### The US–China Tariff Deadline
The center of global market attention this week is the approaching deadline for the US to either impose new tariffs on Chinese goods or strike a trade compromise. This deadline has fueled:
– **Risk-off sentiment**, benefiting traditional safe-haven currencies like the US dollar, Japanese yen, and Swiss franc
– **Volatility across emerging and developed market currencies**
– **Negative pressure on trade-dependent currencies** such as the British pound
#### Impact on GBP/USD
As investors seek the safety of the US dollar, the pound has been left exposed. The “greenback” attracts capital via:
– Its global reserve status
– Perceived safety in periods of geopolitical and economic instability
– Stronger recent US macroeconomic indicators compared to the UK
### UK Domestic Factors: Brexit and Economic Data
While global developments dominate headlines, UK-centric factors cannot be ignored in assessing the pound’s trajectory.
#### Brexit Concerns
The final stages of the UK’s exit from the European Union continue to inject uncertainty into the FX markets:
– The government faces looming deadlines to finalize post-Brexit trade arrangements.
– Ongoing negotiations with both the EU and other nations, including the US, have yet to yield comprehensive
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