Sterling Steadies Amid Global Trade Tensions
Sterling rose slightly against the dollar due to UK exemption from new US tariffs and positive UK economic data. Despite relief, uncertainty looms over the UK's trade outlook as US policies prompt investor caution. The UK's strong bond market contrasts with global trends amid upcoming talks on trade with China.
On Wednesday, the sterling firmed against the dollar as the United Kingdom dodged the latest round of U.S. tariffs, providing relief to investors. Positive economic data added to the currency's strength, drawing a stark contrast to other international financial movements.
The U.S. announced it would double tariffs on steel and aluminium imports to 50%, excluding the UK. Analysts, however, remain sceptical of the long-term implications, as existing duties still stand, casting doubt on the effectiveness of recent agreements.
Global investors are cautious with a looming phone call between President Trump and China's leader potentially affecting trade relations. The UK's strong bond demand exhibits investor confidence, yet looming economic uncertainties may influence future fiscal strategies.
(With inputs from agencies.)
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