Why the Surge Is Shaking Global Markets
The GBP USD surge accelerated Monday, climbing past 1.3400 — its highest point since September. This increase comes amid deepening concerns over U.S. political interference. President Trump’s attacks on Federal Reserve Chair Jerome Powell triggered a sharp sell-off in U.S. assets and a rush to safer alternatives. Investors are growing increasingly wary, fueling momentum behind the surge.
Trump’s Comments Drive Surge and Market Volatility
President Trump reignited tension by calling Jerome Powell a “major loser” and demanding immediate rate cuts. This bold move threatens the Fed’s independence — a key concern for markets. As a result, U.S. stocks tumbled, the dollar weakened sharply, and gold surged above $3,500. These shifts intensified the surge, as traders looked to more stable currencies.
Key Resistance Tests for the GBP USD Surge
Despite the strong climb, the GBP USD surge faces resistance between 1.3422 and 1.3436. This zone has held back upward moves before, notably in 2023 and 2024. Analysts suggest traders may begin selling near this area. A pullback could pause the surge, depending on how market sentiment evolves around U.S. policy.
How U.S. Uncertainty Fuels the Surge
The global impact of U.S. monetary policy uncertainty cannot be ignored. European indexes opened lower, reflecting growing fears about a weakening U.S. economy. Compounding the issue, new U.S. tariffs on Asian solar imports have sparked fresh trade tensions with China. These moves add fuel to the GBP USD surge, as global investors seek more stable options.
Final Thoughts on the Surge
The latest GBP USD surge is a direct response to political drama surrounding U.S. monetary policy. With concerns over Federal Reserve autonomy unresolved, the pound may continue to benefit. Still, technical resistance remains a hurdle. Investors should stay alert as volatility rises and new developments unfold.
