EUR/USD has touched its highest level since November 5th this morning with the pair briefly reaching 1.09 before receding. Fears over Donald Trump’s tariff plans are causing havoc in equity markets around the world with continuing losses seen yesterday following on from last weeks huge sell off. The constant chopping and changing as to whether they will be enacted and to what extent has caused a huge fall in the S&P500 in the US which has dropped a huge 7.5% in just nine days. With Donald Trump not looking like he will back down from his plans fears are growing that the US could be heading for recession later this year, although at present the chances remain slim. If these chances rise then the US Federal Reserve may be forced to cut interest rates faster than expected and it is this that is forcing the dollar lower. GBP/USD is up to around 1.2925.

The pound slipped to a two-year low against the US dollar on Tuesday as political uncertainty weighed on the currency, however, the British pound did show signs of recovery in the afternoon as weakness in the USD provided GBP with some support.