The Pound Sterling (GBP) has appreciated against the US Dollar (USD), reaching approximately 1.3150, driven by concerns regarding the US economic outlook stemming from tariff policies. This marks the fifth consecutive day of gains for the GBP/USD pair, approaching the six-month high of 1.3207 recorded on April 3. Investor sentiment has shifted away from the USD amid escalating trade tensions between the US and China, with China increasing counter-tariffs on US goods to 125% effective Saturday. The US Dollar Index (DXY) has subsequently declined to near 99.00, a three-year low. While President Trump’s temporary suspension of reciprocal tariffs mitigated immediate recessionary risks, the exclusion of China has maintained pressure on the USD. Despite the intent of US economic policies to incentivize domestic manufacturing, business owners remain hesitant, citing concerns over potential future reductions in import duties following trade agreements.
