Sterling has maintained a positive position in markets over the course of this week with a noticeable push higher in yesterday’s trading session, which has continued this morning. The move came following further tariff threats from Trump of a general 25% across the board but had added confusion when mentioning it to be specific to car imports, this of course will be outlined and have a clearer picture as things transpire.
Trumps comments on the EU also didn’t help matters, alluding to his strong dislike to it and that it was currently taking advantage of the US, he is wanting to take back control somewhat, however this could heighten the prospect of a trade war which could impact both the European Union and the United States.
The EU is open to talks and negotiations haven’t officially taken place.
With the UK having a good relationship in terms of international trade with the US, it has steered Sterling away from being hit with potential tariffs, at least for now. This has allowed GBP to take advantage of the current stance Trump has with other nations, with the Euro currently taking a fair old hit.
Markets responses may become more muted following President Trumps Tarriff outbursts, as they may become repetitive ‘threats’, when further tariffs are actually imposed we could see bigger movements come to light.
Following Trumps cabinet meeting last night, a topic of conversation was of course tariffs and the issues surrounding Canada, seeing Sterling rally close to multi year highs.
Prime Minister Kier Starmer has arrived in Washington for talks with President Trump with one main objective on his mind, to guarantee security for Ukraine which Trump has already pushed back on, there are other topics of conversation to be had but Starmer has been particularly vocal around this topic. These talks could pave the way on the relationship between the US and the UK for the next 4 years under Starmer’s reign.
-Oakleigh Exchange Partners-