Published: 10/04/2025 By ECAP
The British Pound recovered lost ground following news of a delay in global tariffs, gaining strength against both the Dollar and the Euro. In fact, easing trade tensions and a possible rebound in global markets helped lift Sterling sentiment. Despite this, uncertainty around ongoing geopolitical and economic developments keeps the outlook cautious, as the Pound remains sensitive to shifts in global risk appetite and investor confidence.
The Euro held onto its recent gains as investors sought safety amid escalating trade tensions between the U.S. and China. The announcement of steep tariffs and fears of a prolonged trade war triggered a selloff in global equities, weakening the U.S. Dollar. This shift in sentiment boosted the Euro, which often benefits in times of uncertainty due to its perceived stability and its negative correlation with the Dollar.
The U.S. Dollar weakened despite a 90-day delay in new tariffs, as markets remained wary of trade tensions with China and uncertain economic signals. While the greenback briefly rebounded, it slipped again in Asian trade amid fears of slower growth and mixed Federal Reserve signals. Ultimately, safe-haven demand favoured other currencies, leaving the Dollar under continued pressure.
Data supplied by GC Partners