Sterling Steady as Trump Threatens Eu with Tariffs
The British pound traded little changed against the dollar on Thursday, clinging to a more than two-month high hit the previous day, as U.S. President Donald Trump's tariff threats turned towards the European Union. Sterling has been bolstered by expectations for relatively fewer rate cuts from the Bank of England and the European Central Bank. The pound's stability is also seen in its limited reaction to Trump's tariff talk, with analysts predicting it could outperform in the G10 space if tariffs are implemented.
- This resilience in sterling highlights the interconnectedness of global trade policies and their impact on currencies, underscoring the need for careful consideration of the potential consequences of protectionist measures.
- How will the UK government's response to Trump's tariff threats, including its defense spending pledge, affect the prospects for a renewed Brexit deal with the EU?