GBP/USD hits 6-month high on UK/US trade deal rumours
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Daily Currency Update
GBP/USD has hit a six-month high this morning as US Vice President, JD Vance, said that a there was a "good chance" of a trade deal being reached with the UK soon. The UK is on the baseline 10% global rate implemented by Donald Trump on April 2nd. Yesterday, US officials also said that good progress was being made between the US and the EU on a deal in what many see as an effort to calm markets after the yield on US Treasury's jumped last week. The huge amount of uncertainty created by Trump's tariff offensive has risked the status of US bonds and the US dollar as being safe-haven assets and it seems Trumps actions could send the US into recession later this year should deals not be struck quickly. EUR/USD is back down to 1.1330 after touching 1.14 yesterday. GBP/USD is around 1.32.Key Movers
This morning has seen the UK unemployment rate hold steady at 4.4% and wage growth also unchanged at 5.6%. Today's main data is the monthly German ZEW Economic Sentiment report which is expected to show a sharp drop in optimism of those surveyed. As ever any developments re: tariffs will be the main market mover.Expected Ranges
- GBP/USD: 1.3160 - 1.3300 ▲
- GBP/EUR: 1.1585 - 1.1685 ▲
- GBP/AUD: 2.0670 - 2.0840 ▼
- EUR/USD: 1.1280 - 1.1430 ▼