Never miss a market update. OFXpert commentary straight to your inbox
Trump’s reciprocal tariff threat sparks volatility
Daily Currency Update
According to the British Chambers of Commerce (BCC), Donald Trump’s proposal to impose reciprocal tariffs on all US trading partners is adding to market volatility, with potential repercussions for the UK economy.While no specific measures have been announced, the uncertainty surrounding US trade policy has put pressure on the pound (GBP), as investors weigh the risk of retaliatory tariffs and potential disruptions to UK-US trade flows. The delay in implementation has provided temporary relief, but FX markets remain cautious as the White House finalises its tariff strategy.
Key Movers
The euro held firm near two-week highs’ as FX markets reacted to President Trump’s proposed reciprocal tariffs and renewed optimism over a potential resolution to the Ukraine war.Trump’s announcement of country-specific tariffs, set to take effect in April, added uncertainty to global trade flows, but investor sentiment remained cautiously optimistic that negotiations could ease tensions. Meanwhile, hopes for de-escalation in Ukraine supported risk-sensitive assets, as Trump vowed to accelerate peace talks following discussions with Presidents Putin and Zelensky.
Expected Ranges
- GBP/USD: 1.2555 – 1.2645 ▲
- GBP/EUR: 1.1985 – 1.2055 ▲
- GBP/AUD: 1.9835 – 1.9915 ▲
- EUR/USD: 1.0445 – 1.0525 ▲
Want to stay ahead of market moves?
Subscribe to email currency updates from our OFXperts. We monitor global events and FX markets day and night, so you don’t have to.
* Required information
"*" indicates required fields