Home Daily Commentaries GBP rises as Trump hints at UK trade deal

GBP rises as Trump hints at UK trade deal

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Friday 28 February, 2025

Daily Currency Update

Sterling found support against the US dollar after a positive White House meeting between US President Donald Trump and UK Prime Minister Keir Starmer, where Trump accepted an invitation for a future state visit from King Charles.

The friendly tone signals that Britain may escape the looming 25% US tariffs that rattled the euro after Trump targeted EU imports. Trump also revealed ongoing negotiations for a UK-US trade deal, a prospect that could boost confidence in GBP and strengthen trade ties between the two economies.

Markets are now closely watching for further details, with any progress likely to provide additional upside for the pound.

Key Movers

The euro faces downside risks as FX markets remain underpriced for the potential fallout of a global trade war. US President Donald Trump confirmed that 25% tariffs on imports from Mexico and Canada will take effect on March 4, alongside an additional 10% levy on Chinese goods.

Rising protectionism could weigh on global trade flows, dampen eurozone exports, and pressure economic growth, keeping EUR/USD under strain. Traders are now watching for retaliatory measures from affected nations, which could further heighten FX volatility and risk-off sentiment.

Expected Ranges

  • GBP/USD: 1.2575 - 1.2655 ▲
  • GBP/EUR: 1.2095 - 1.2165 ▲
  • GBP/AUD: 2.005 - 2.085 ▲
  • EUR/USD: 1.0345 - 1.0435 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.