After repeatedly criticizing Federal Reserve Chairman Powell for not cutting interest rates in recent times, Trump has made it clear in his latest statement that he will not dismiss him from his position. He said, 'The media exaggerated the facts, and I have no intention of firing him. I just hope he can be more proactive in cutting interest rates.' This statement eased market concerns about the independence of the Federal Reserve, and the US dollar subsequently gained support.

At the same time, US Treasury Secretary Scott Besant told investors in a private meeting at JPMorgan that the current trade situation with Asian powers is "unsustainable" and he is optimistic about reaching an agreement. Trump also emphasized the progress of negotiations and denied the claim of raising tariffs to 145%, stating that the current tariff level will be temporarily maintained.

The pound falls, and the market remains cautious about the policy path of the Bank of England

Although the previous day the pound had risen to a seven month high, the GBP/USD fell back to 1.3300 against the backdrop of a rebound in the US dollar. The main pressure comes from the market's uncertain expectations for the future policies of the Bank of England (BoE).

Given the current escalation of international trade concerns, particularly the Trump administration's imposition of 10% tariffs on UK exports and 25% tariffs on cars and steel, the market is increasingly concerned about external shocks to the UK economy, which may prompt the Bank of England to take interest rate cuts at its May policy meeting.

Against the backdrop of the current global economic downturn and unstable export environment in the UK, the Bank of England may have to shift towards a more accommodative monetary policy. "- Jane Andrews, Capital Economics analyst

Technical graphics show that if the pound fails to hold the support level around 1.3280, it may backtrack to 1.3200 near the 50 day moving average. On the contrary, if the market's expectation of the Bank of England maintaining interest rate stability rebounds, the pound is expected to once again challenge the high point of 1.3424.

Editor's viewpoint:

The current trend of GBP/USD reflects a shift in market expectations regarding the policy paths of the United States and the United Kingdom. Trump's relaxation of his rhetoric towards the Federal Reserve has supported the US dollar in the short term, while the decision-making pressure faced by the Bank of England has become the main factor limiting the rise of the pound.

Against the backdrop of uncertain global trade prospects and weak UK economic data, the pound may maintain a volatile and weak pattern in the short term. If BoE releases a clearer dovish signal, the pound may further drop to the 1.3200 line.