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Pound rallies as 'Trumpcession' fears reverberate - YAHOO FINANCE
Pound (GBPUSD=X, GBPEUR=X)
The pound climbed 0.4% against the dollar on Tuesday, rallying above the $1.29 mark as markets digest fears of a possible impending US recession.
Traders are becoming increasingly anxious about how president Donald Trump's bevvy of policy decisions will play out in the coming months.
US import tariffs have been top of mind in the last few weeks as Trump signed executive orders to ramp up levies on Canada, Mexico and China, as well as laying out plans for reciprocal tariffs globally.
The shake-up has come as Trump ducked questions about possible inflationary policies or the potential for a recession for the world's largest economy. He warned of a "period of transition".
The dollar index (DX-Y.NYB), which tracks the greenback against a basket of currencies fell 0.5%. Over the last five sessions it has declined nearly 2.2%, and for the year-to-date it is 4.6% lower.
The pound fell against the euro, meanwhile, sitting below the 1.19 mark. Tuesday's session saw declines of around 0.2% in early trade.
The Eurozone currency strengthened on hopes of a deal for German defence spending, as Europe continues to grapple with a response to the latest moves in supporting Ukraine against Russia.
