The data out of the UK this morning was a mixed bag with no real impact on the Pound. Movement seen in markets came from the announcement from President Trump after he took office, with focus on the tariffs.
Trump is looking to impose tariffs as early as 1st February with Canada and Mexico in the firing line, however China wasn’t mentioned to have any specific duties on them just yet.
A universal tariff was mentioned by Trump which suggests anyone who does business with the US will be hit with it. “You’d put a universal tariff on anybody doing business in the United States because they’re coming in and they’re stealing our wealth,” President Trump said. He also followed on saying the implementation could be ‘rapid’.
This tariff is the strongest and most pro-US, which in turn would suggest further US Dollar strength across the board. The hawkish move by Trump supports an unlikely shift that any downside would be seen.
As markets digest Trumps announcements and immediate implementations, more volatility could develop amongst currencies as more developments come to light in the following days to take a full understanding of his plans for the US.
It still looks bleak for Sterling in the markets with losses continuing to show against the majors, Euro and Dollar being at the forefront and most noticeable.
-Oakleigh Exchange Partners-