The Pound Sterling (GBP) has appreciated against the US Dollar (USD), reaching levels near 1.2850 during Wednesday’s European trading session. This movement is attributed to increasing market anticipation of a potential recession in the United States, exacerbated by ongoing trade tensions between the US and China. The US Dollar Index (DXY) has subsequently declined to approximately 102.00. Recent escalations in the US-China trade dispute, including increased tariffs imposed by the US President in response to retaliatory measures from Beijing, have heightened concerns regarding US economic stability. Deutsche Bank projects a potential 50 basis point interest rate reduction by the Bank of England (BoE) in May.
