GBP/USD has resumed its losing ways on Monday, after falling 1.3% last week. In the North American session, the pair is trading at 1.2960, down 0.30% on the day. On the release front, there are data indicators in the U.K. or the U.S. On Tuesday, the U.K. releases wage growth and unemployment claims.
The pound is under pressure, as nervous investors are snapping up the safe-haven greenback due to rising trade tensions between the U.S. and China. On Friday, the U.S. raised tariffs on $200 billion in Chinese goods, from 10% to 25%. The move was announced a week ago, and sharp declines in the equity markets have boosted the yen. The Chinese response was vigorous, with Bejing announcing earlier on Monday that it would slap tariffs on $60 billion of U.S products.
Despite the tit-for tat tariffs between the U.S. and China, talks between the sides continue, with officials scheduled to hold the next round of talks in Beijing. The new tariffs do not apply to Chinese goods that left port prior to May 10, affording a 2-week window for negotiators before the tariffs take effect. The escalation in tensions has shelved a meeting between President Trump and Chinese President Xi, but the two leaders could meet at the G-20 summit in Japan in June.
British data was a mixed bag on Friday, leaving the pound unchanged. The monthly GDP release declined in March by 0.1%, above the estimate of 0.0%. There was better news from the quarterly indicator. Preliminary GDP for Q1 came in at 0.5%, matching the forecast. This was up from final GDP in Q4, which climbed 0.2%. Manufacturing Production remained steady at 0.9% in March, crushing the estimate of 0.1%