The Pound Sterling (GBP) has appreciated against the US Dollar (USD), reaching approximately 1.2850, driven by investor concerns regarding a potential US recession stemming from escalating US-China trade tensions. The US Dollar Index (DXY) has declined to around 102.00, reflecting broad USD weakness. Recent tariff increases imposed by the US on China, exceeding 100% in response to Chinese retaliatory measures, have heightened recessionary fears. Market participants are also factoring in potential monetary policy adjustments, with Deutsche Bank projecting a possible 50 basis point interest rate reduction by the Bank of England (BoE) in May.
