It’s a quiet day on the economic calendar, but don’t let that fool you — market volatility is still in full swing. Currency markets remain under pressure as the US-China tariff war continues to heat up, fuelling global uncertainty and driving a sell-off in the pound.
All Eyes on the Fed Speech Tonight
While data is light today, traders will be watching closely this evening when the President of the San Francisco Federal Reserve delivers a speech. Although not a major scheduled policy event, any comments made could provide valuable insight into how one of the twelve key Federal Reserve Districts is viewing the growing impact of the Trump administration’s trade policy.
Tit-for-Tat Tariffs Rock the Markets
Market nerves remain frayed following China’s retaliatory move to impose 34% tariffs on all US imports, a direct response to last week’s dramatic US tariff announcement — also set at 34%, coinciding with what Beijing labelled ‘liberation day’.
Now, the situation is poised to escalate even further. The US has threatened to introduce an additional 50% tariff on Chinese goods from Wednesday, a move that would bring the total effective tariff rate to a staggering 104%.
Such a drastic rise in trade levies would have far-reaching implications for global supply chains, inflation, and investor confidence — not to mention the currencies caught in the crossfire.
Sterling Under Pressure Across the Board
Amid the uncertainty, the pound is struggling, declining against all major peers today. With no fresh domestic data to support it and risk sentiment firmly tilted toward caution, Sterling is feeling the full impact of global risk aversion.
Strategic Moves in Volatile Times
With markets as unpredictable as they are now, it’s more important than ever to have a clear strategy for managing currency exposure. Whether you’re looking to safeguard your international payments or take advantage of exchange rate swings, Qumoney’s FX experts are here to help.
Contact us today for market insights and tailored solutions to support your business through global turbulence.