The Dollar has recovered further against both Sterling and Euro after a Federal Court ruled against Trump’s liberation day tariffs. The recovery was aided by bets on fewer trade related volatility for The US economy. The court ruled that Trump did not have enough authority to impose these tariffs, now leaving Trump’s administration 10 days to appeal this decision. Although this potential now decreases economic uncertainty, the next 10 days would still prove sticky depending on whether an appeal is lodged or not.
The Federal Reserve also released their minutes from their policy meeting earlier this month, highlighting that economic uncertainty still weighed heavy and therefore justified a cautious stance to interest rate movements. Higher inflation which is also proving sticky, along with rising unemployment is leading the Federal Reserve to take a wait and see approach before committing to any further decisions, given the fact many members of the committee feel that uncertainty remains high whilst Trump’s tariffs are expected to stay in place throughout these next 10 days.
We then finish the day off with a basket of US economic data, with preliminary GDP data looking weak which again backs up the economic uncertainty the US are currently facing. Also due to be released is US weekly jobless data, with initial jobless claims expected to show an increase of 3,000 claims, again further cementing the concern surrounding unemployment and the immediate impact that will have on the economy.
GBP/EUR 1.1932 GBP/USD 1.3456 GBP/AED 4.9442
GBP/AUD 2.0911 GBP/CHF 1.1161 GBP/CAD 1.8617
GBP/NZD 2.2575 EUR/USD 1.1265 GBP/ZAR 24.1174