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Bank of England expects UK inflation rise amid 'even greater uncertainty' - YAHOO FINANCE
Pound (GBPUSD=X)
Sterling rallied against the dollar on Wednesday morning, heading more than 0.4% higher to trade at above the $1.28 mark, as markets continue to digest US president Donald Trump's latest moves, both in tariffs and with regards to the Ukrainian war.
The rally reflects the dollar's weakness, as the dollar index that tracks the greenback against a basket of currencies (DX-Y.NYB) dropped 0.7% in early trade.
Currency traders focused on the world's reserve currency are also worried about growth, said Neil Wilson, an analyst at TipRanks.
Read more: LIVE: Global stocks climb as pound and euro hit four-month high against US dollar
"Tariffs push up inflation, which ought to keep the Fed tighter for longer, which ought to be good for USD," he said. "But the weakness in USD vs the relative strength in EUR indicates that the market thinks Trump’s policies may be bad for the US and good for Europe, which seems counterintuitive, no?
"GBPUSD at 1.28 also suggests that broad dollar weakness is reflective of concerns about then US economy – the term 'Trumpcession' is doing the rounds."
