The outlook for the U.S. economy is worsening, leading to shifts in currency valuations as market volatility rises. Recent U.S. tariffs on Canada, Mexico, and China, along with President Trump’s pause on military aid to Ukraine and mixed economic data, have heightened concerns.
Jane Foley, head of FX strategy at Rabobank London, anticipates that the British pound and Japanese yen may perform well in this environment.
She noted that a modest U.S. trade surplus with the U.K. makes GBP less likely to be targeted by tariffs, supporting its strength against the euro. However, she cautioned that the pound is not a true safe haven.
On Tuesday, the British pound traded at $1.2712, up 0.1% against the dollar but down 0.1% against the euro. Year-to-date, it has gained 1.6% against the U.S. dollar’s.
Source (CNBC)
