Key Highlights:

Sterling Strength & Trade Uncertainty

• Sterling climbs to fresh highs

GBP/USD broke above its September 2024 peak, reflecting continued optimism around UK economic resilience and potentially shifting interest rate expectations.

👉 Could this stronger pound impact your import/export costs or hedging strategy?

• Focus shifts back to China

With the latest tariff proposals and trade talk developments, many now see the next move as China’s to make. Global sentiment hinges on whether Beijing will ease tensions or retaliate.

👉 How could uncertainty in China’s response affect your business planning or market exposure?

Market Recap:

USD Slips, Sterling Gains Ground

The US dollar weakened notably in the afternoon session following a sharp drop in the Dallas Fed manufacturing index, which hit its lowest point since May 2020. Around 30% of surveyed firms reported a decline in new orders, with many pointing to the uncertainty surrounding Trump’s proposed tariffs as a key factor weighing on business sentiment.

Meanwhile, the British pound held firm throughout the day, with GBPEUR reaching its strongest level since early April—reflecting relative resilience in UK assets amidst global trade tension.

👉 What could a weaker dollar and stronger pound mean for your currency exposure or cross-border costs?

Today’s Market Overview:

All Eyes on US Job Data Amid Trade Tension

Today’s spotlight is on the US JOLTS job openings report, which will be a key indicator of labour market strength. A solid reading could help stabilise the dollar, which came under pressure overnight amid signs of stalled US-China tariff talks. Treasury Secretary Bessent indicated that progress hinges on China making the first move—dampening hopes of imminent de-escalation.

The dollar is attempting to recover this morning after President Trump announced tariff relief for foreign car parts and eased separate levies on imported aluminium and steel—moves that may offer temporary support to risk sentiment.

👉  How might signs of labour market strength or further trade policy shifts affect your portfolio positioning or dollar exposure?

29th April 2025

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