GBP/USD: Sterling Resumes Upside Swing — Reclaims $1.33 After Two Down Days

Dollar weakened as Trump’s tariff rhetoric turned quiet in an otherwise tranquil week of no major economic updates.

💷 Sterling Regains Momentum

• The GBPUSD resumed its mid-term uptrend Thursday and early Friday, regaining its $1.33 level after a brief two-day pullback. The pair had cooled off earlier in the week following a monster 10-day winning streak (almost 11, if it didn’t snap shortly before the close), but a weaker US dollar and the absence of fresh economic headwinds helped sterling regain its footing.
• What’s driving the dollar lower? Quiet from the top. After rattling markets with tariff threats and Powell-bashing tweets last week, President Trump dialed down the drama. What followed up was, well, not much, and that non-eventfulness dragged the dollar down across the board.

📉 Dollar Drifts on Lack of Updates

• ​​The dry-as-a-bone macro calendar has also given currencies like the pound room to breathe. With no major data releases or central bank news on deck, traders are defaulting back to technical trends — and right now, the cable’s bias remains pointed higher.
• From April 8, the start of the mouth-watering 10-day winning streak, the pound has added about 5% to its valuation against the weaker greenback. It’s also sitting well above the major simple moving averages (SMAs) — the 50-day, the 100-day, and the 200-day lines are deep below.

📆 All Eyes on Next Week’s Data Avalanche

• What’s next on the radar? Big things are coming next week and traders will be seeking to ride out the expected volatility into some nice profit-making activities.
• Brace yourself for the release of the Federal Reserve’s favorite inflation measure — PCE — which will provide some key data for Jay Powell to decide whether a rate cut will be the best outcome of the May 6-7 meeting. Also, the nonfarm payrolls for April are scheduled for the end of the week — another major figure to indicate the health of the US economy.