The British Pound can extend a short-term recovery against the U.S. Dollar amidst growing confidence the worst-case universal tariff scenario is off the table. But the recovery will be tested mid-week by the Federal Reserve interest decision.
The Dollar extended a run of losses after the new U.S. President made it clear he wants lower interest rates and all but confirmed a blanket import tariff won't be considered.
The Dollar is reaching a turning point as 'Trumphoria' looks set to fade and equity market valuations clash with rising bond yields.
Pound Sterling's relief rally against the Dollar comes amidst signs Donald Trump is taking a measured approach to tariffs. But analysts caution this is a reprieve, not a trend change.