GBP/USD strengthens to around 1.3470 early European session

GBP/USD gathers strength above 1.3450 as Fed independence concerns pressure US Dollar

The GBP/USD pair edges higher to near 1.3470 during the early European session on Tuesday. The Greenback weakens against the Pound Sterling (GBP) following the US Department of Justice’s threat to indict Federal Reserve (Fed) Chair Jerome Powell over comments to Congress about a building renovation project.  

Powell said on Sunday that the Fed has received subpoenas from the Justice Department over statements he made to Congress last summer on cost overruns for a $2.5 billion building renovation project at the central bank’s headquarters in Washington. Read more…

GBP/USD holds steady around 1.3475 as traders seem hesitant ahead of US CPI report

The GBP/USD pair edges higher for the second straight day on Tuesday and looks to build on the previous day’s recovery from the 1.3390 region, or a three-week low. Spot prices currently trade around the 1.3475 region, up nearly 0.10% for the day.

The US Dollar (USD) struggles to attract any meaningful buyers amid growing worries about the US Federal Reserve’s (Fed) independence, and turns out to be a key factor acting as a tailwind for the GBP/USD pair. In fact, prosecutors opened a criminal investigation into Fed Chair Jerome Powell. In a rare statement, Powell said that the threat of criminal charges against him is a consequence of the central bank setting interest rates based on the best assessment of what will serve the public, rather than following the preferences of the President. Read more…

GBP/USD rallies as ‘Sell America’ trade returns on Fed independence fears

The British Pound (GBP) stages a comeback on Monday as traders grow risk-averse following threats to the US Federal Reserve (Fed) independence. A scarce economic docket in the UK shifts the focus to geopolitical developments and the US Dollar (USD), which continued to soften as the ‘Sell America’ trade is back into play. At the time of writing, GBP/USD trades at 1.3473, up 0.55%.

Over the weekend, Fed Chair Jerome Powell released a statement and commented in a video that “the US central bank had been served grand jury subpoenas from the Justice Department threatening a criminal indictment.” He said the move “should be seen in the broader context of the administration’s threats and ongoing pressure,” and added that “the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” Read more…