Market News
Gold prices rebound amid demand for safe havens - YAHOO FINANCE
Pound (GBPUSD=X, GBPEUR=X)
The pound edged higher against the dollar in early European trading on Tuesday, up 0.4% to $1.2769, bouncing back from the one-month low in the previous session as uncertainty grows around global trade policy and fears mounted of a recession triggered by US president Donald Trump's tariffs.
The dollar extended its losses on Tuesday morning, with the dollar index (DX-Y.NYB), which measures the greenback against a basket of six currencies, losing 0.4% to 102.90.
“I think this set-up is just plain awful for sterling – a huge debt pile on stretched fiscal limits and pinning all hope on a dramatic increase in growth and productivity – Starmer is right to be worried,” says Laoise Ni Thighearnaigh, a trader on the FX desk at JP Morgan, said.
“The push and pull of anti-US exceptionalism USD supply, and hair-on-fire risk-off USD demand, is incredibly hard to navigate, so we are keeping our GBP shorts against EUR and JPY,” she added.
Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.
As the trade war escalates, Beijing – Washington’s major economic rival – unveiled its own 34% duties on US goods to come into effect on Thursday. Trump has now threatened fresh levies of 50% on imports from the world’s second-largest economy.
IG market analyst Tony Sycamore commented: "Things have gone from bad to worse.”
