Pound Sterling holds onto gains against US Dollar amid concerns over US economic outlook
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The Pound Sterling grips gains above 1.2900 against the US Dollar as investors expect Trump’s policies could slow down the US growth momentum. Fed’s Powell reiterated the central bank needs more clarity before adjusting the monetary policy. BoE’s Mann argues against the gradual and cautionary monetary policy easing approach. The Pound Sterling (GBP) clings to gains slightly above 1.2900 against the US Dollar (USD) in Monday’s European session. The GBP/USD pair strengthens as the US Dollar struggles to gain ground amid growing concerns over the United States (US) economic outlook. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades cautiously near the four-month low of 103.50. Market participants have become increasingly worried over US economic prospects after comments from US President Donald Trump on Friday indicated that his “American First” policies could lead to economic turbulence in the near term. US President Trump refrained from guiding the impact of his policies on the economy but said in the interview with Fox News that there is a “period of transition”, because what we are doing is very “big”. His comments came after being asked whether his policies could lead to a recession in the economy. Donald Trump reiterated that reciprocal tariffs will be announced on April 2. Last week, Trump imposed 25% tariffs on imports from Canada and Mexico but exempted many products that come under the purview of the United States-Mexico-Canada Agreement (USMCA) for a month. He also increased surcharges on Chinese imports to 20% by imposing an additional 10%. Market experts continue to believe that Trump’s tariff policies would be inflationary for the economy, but they have changed their perception of its impact on the economic outlook. At one point when Trump’s agenda was expected to accelerate economic expansion, it is now anticipated…
Filed under: News - @ March 10, 2025 8:24 am