The GBP/USD currency pair settled above Friday’s low of 1.3315, its weakest level since April 8th, amid broad-based strength in the US Dollar, supported by signs of improving trade dynamics between the United States and China as well as solid expectations that the Federal Reserve will keep interest rates on hold through the year.
US President Donald Trump said that he had struck “fantastic trade deals” with Chinese President Xi Jinping as he wrapped up his Beijing visit on Friday.
After the Trump-Xi meeting, a White House official also said: “The two sides discussed expanding market access for American businesses into China and increasing Chinese investment.”
In parallel, traders have largely priced out Fed interest rate cuts for 2026. This shift has been driven by intensifying inflation pressures tied to higher energy prices, which has reinforced the perception of a prolonged period of restrictive Federal Reserve monetary policy.
US producer prices rose at their sharpest rate in four years in April, data showed, while annual headline inflation, at 3.8% in April, has been the highest since May 2023.
Meanwhile, ongoing political instability in the United Kingdom continued to weigh on the Pound.
Britain’s Health Minister Wes Streeting resigned from the government on Thursday, citing irreconcilable differences over the government’s handling of public health policy and budget allocations.
At the same time, UK Prime Minister Keir Starmer is facing calls to step down after the ruling Labour Party suffered heavy losses in last week’s local elections.
The major Forex pair lost 1.69% for the week.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
