The pound reached its highest level since February 2022 amid the weakness of the US dollar caused by another sharp reversal of Trump's trade policy. The British currency rose to $1.3589.
On Friday, the US president alarmed global markets by announcing his intention to impose 50% duties on all imports from the European Union from June 1. However, on Sunday he softened his position, postponing the introduction of tariffs to a later date — until July 9.
This happened after a telephone conversation with European Commission President Ursula von der Leyen, who said the EU needed more time to reach an agreement.
Despite the fact that the UK already has a trade agreement with the United States, the pound also strengthened against the background of general market optimism. Since the beginning of the year, the currency has gained more than 8% against the dollar, which is the best result for sterling in the first five months of the year since 2009.
The strengthening of the pound is largely due to the fact that traders expect a more cautious monetary policy of the Bank of England against the background of steady inflation and stable economic growth, unlike other central banks, which are preparing for an early rate cut.
