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Despite the initial upheaval caused by US President Donald Trump trying to fire one of the independent Federal Reserve’s governors, the markets settled over Tuesday. The pound ended almost exactly where it started the day against the dollar and both currencies were a hair ahead of the euro.
News in the UK yesterday was glum with Deutsche Bank downgrading the prospects of multiple high street brands, such as Wickes and Primark, telling investors to sell their shares. And this morning has begun with an above-predicted 2% rise in the energy price cap – the fourth hike in a row.
Over in the US, the day began with a dramatic drop in the dollar as the markets caught up with Trump’s attempts to fire Fed governor Lisa Cook. Though, in a sign that traders are becoming comfortable with Trump’s chaotic administration, USD soon recovered.
Overnight Trump doubled his tariff on Indian goods to 50% as punishment for the country’s Russian oil imports. The impact of that rise may be seen today, though as the rise was announced earlier this month it may already be baked in.
By the close of trading, the euro trailed the pound and dollar, but the difference was negligible. This is despite the French Prime Minister calling for a confidence vote on budget cuts which could see his minority government collapse if the vote goes against him.
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GBP: Slightly ahead despite glum news
The pound was slightly ahead of the dollar and euro on Tuesday, despite multiple major UK high street brands seeing rating downgrades. Today’s raising of the energy price cap also puts pressure on sterling.
GBP/USD past year
EUR: French confidence vote threatens upset
The euro was slightly behind the pound and the dollar on Tuesday, though only marginally. French Prime Minister François Bayrou called a snap confidence vote in his minority government, which could threaten a collapse.
EUR/USD past year
USD: Market recovers from Trump’s Fed attack
The dollar was a hair behind the pound and just ahead of the euro at close of Tuesday, despite Trump’s attempt to fire Federal Reserve governor Lisa Cook. The market quickly recovered from an initial drop.
USD/GBP past year
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