Sterling's Shaky Ground Amid Trade Wars and Economic Uncertainty
Sterling depreciated against the dollar as the U.S. and China agreed to cut tariffs, improving global risk sentiment. The Bank of England reduced interest rates amid economic uncertainty. Upcoming UK and EU events, potential new trade and defense agreements, and key economic data releases could impact Sterling's trajectory.
The sterling experienced a turbulent start to the week, falling against a stronger dollar as the U.S. and China reached a temporary tariff-slashing agreement.
This development, stemming from weekend negotiations, reinvigorated global risk appetite, yet left Sterling at a four-week low of $1.318.
The Bank of England's recent interest rate cut and upcoming economic and political agendas, including a possible new defense agreement during the EU-UK summit, are poised to influence Sterling's performance.
(With inputs from agencies.)
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