A worldwide market sell-off caused the British pound to plummet against the US dollar and the euro on Friday. However, if worries about the US economy and its tariffs increase, there may be a chance for a comeback. As the US dollar declines, analysts predict that the pound may gain strength in the upcoming months due to concerns that US trade policies may have a detrimental effect on global market confidence and economic growth.
Despite a global market panic, the Euro demonstrated strength against the Pound, hitting eight-month highs. However, if tensions between the US and the EU result in a tariff fight, the value of the euro can reverse. In fact, the imposition of retaliatory tariffs may put more pressure on the European economy and weaken the Euro. In the end, economists anticipate that volatility will decrease in the upcoming weeks.
The U.S. Dollar experienced a sharp rally on Friday after last week’s market sell-off, but its strength may be short-lived. In fact, analysts foresee continued Dollar weakness, partly due to President Trump’s tariffs and their potential negative impact on economic growth. Ultimately, concerns over these tariffs, along with deteriorating market confidence, could erode the Dollar’s value, leading to forecasts of a weaker Dollar in the coming months.
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