It was a light day for economic data, with no major releases impacting the markets. However, focus this week has been dominated by US politics, particularly new tariffs and trade policies introduced by President Donald Trump and his administration.
US Trade Policy and Market Impact
Overnight, Donald Trump threatened to double taxes on foreign nationals and companies, escalating tensions over discriminatory levies on US businesses. The threat, outlined in a White House memo detailing Trump’s ‘America First’ trade policy, has raised concerns about global trade relations and market stability.
Pound’s Performance and Recovery
At the start of the year, the British pound was the worst-performing major currency, following soft economic data that suggested the UK government might struggle to meet revenue targets. This led to a negative market sentiment, impacting UK bonds and pushing up government borrowing costs, which contributed to the pound’s decline.
However, recent market conditions and data suggest a potential recovery. The pound has begun to claw back some losses against both the US dollar and the euro, driven by shifting investor sentiment and broader market dynamics.
Key Data Releases Ahead
Looking ahead, markets will closely monitor the upcoming UK House Prices Index tomorrow, followed by Consumer Confidence and PMI figures on Friday. These data points will provide further insight into the UK’s economic trajectory and potential currency movements.
What This Means for You
With changing trade policies and shifting currency dynamics, staying informed is essential. If you’re looking to understand how these market trends impact your business or capitalise on currency fluctuations, our experts at Qumoney are here to help. Get in touch today for expert financial guidance tailored to your needs.