President Trump buys yet more time and the Pound's sell-off from welfare cut disaster is over..
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| So as expected, a new deadline of August 1st has been set for all nations by Trump and even that is not a firm commitment. This is both good and bad news..
It's good news because it allows nations more negotiating time with the US and therefore delays potentially harmful global trade tariffs and a decline in global economic activity.
It's bad news because uncertainty remains and financial markets don't like uncertainty. Overall it's a net-positive result (for now).
The Pound is slightly lower on the news due to its 'beta currency' status alongside the stock market, but this will bounce-back in due course.
The recovery from last week's Chancellor Reeves' tears in the house of commons has yet to begin though.
The UK offers its May GDP number on Friday morning which is the week's main event.
Last time-out, the economy shrunk by the most since 2023 due to US tariff concerns. We expect to see a more positive result this time and hope this spurs some form of recovery across the board for Sterling. |
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