Pound Sterling holds gains above 1.3500 amid stronger UK data, US tariff uncertainty

• GBP/USD trades in positive territory around 1.3520 in Monday’s early European session. 
• Trump announced a new global tariff rate boosted to 15%. 
• The upbeat UK PMI and Retail Sales underpin the Cable. 

The GBP/USD pair holds positive ground near 1.3520 during the early European session on Monday. The major pair recovers after falling to four-week lows last week amid renewed concerns over US tariffs. The Bank of England (BoE) External Member Alan Taylor and Federal Reserve (Fed) Bank Governor Christopher Waller are set to speak later on Monday. 

The US Supreme Court struck down US President Donald Trump’s sweeping global tariffs on Friday. In response, Trump has responded by lashing out at the court and imposing a blanket 15% levy on imports. Traders weigh the White House’s next steps on tariffs. Uncertainty surrounding US tariffs could undermine the Greenback and act as a tailwind for the major pair in the near term. 

“The dollar is enduring a broad-based decline as the market tries to assess implications from the court’s decision,” said Rodrigo Catril, strategist at National Australia Bank in Sydney. “Trump’s tariff regime is still in place with more uncertainty.”

Stronger than expected UK economic data provide some support to the Pound Sterling (GBP) against the US Dollar (USD). Data released on Friday showed that the flash UK S&P Global Purchasing Managers’ Index (PMI) data came in better than forecast in February, and Retail Sales have returned to growth in January. 

Traders will shift their attention to the US PPI data on Friday, which might offer clues about the US interest rate path. The headline and core PPI are expected to show a rise of 0.3% in January. If the report shows hotter-than-expected outcomes, this could boost the USD against the GBP in the near term.