Sterling becomes new 2022 high; Trump EU tariff reversal dents dollar

London, – The pound has emerged on Monday to trade the highest since early 2022, as the dollar came under broad pressure after another sudden turnaround in trade policy by US President Donald Trump who gave investors a new dose of uncertainty. Trump sent a shudder through world markets on Friday by threatening a 50% tariff on all the European Union imports from June 1 in the US, which expresses concerns about the impact of US trade policies on the underlying economy. By Sunday, he reversed tack and printed the deadline for rates until July 9 from 1 June, after European commission’s president Ursula von der Leyen told him that the 27 nation block needed more time to deliver an agreement. The EU said on Monday that the call this weekend gave “new impetus” to trade conversations. Although Britain has an agreement with the US, the pound is trapped in the relief period in non-American assets. Sterling rose 0.13% at $ 1.3558, after touching a high of $ 1.359, which is the highest since February 2022. Trade volumes would probably be lighter than usual, given public holidays on Monday in both Britain and the United States. The pound has risen by more than 8% so far this year against the dollar, the strongest performance in the first five months of the year since 2009, when the world from the global financial crisis appeared. Much of it has descended to the fact that persistent inflation and a relatively steady growth in Britain mean that traders believe that the bank or England will not be able to lower interest rates as quickly as other central banks. At Friday’s closure, traders have a price of only 41 basis points at the end of the year by the end of the year, equivalent to a quarter -point reduction and an approximately 50% chance of a second. By contrast, they almost fully praise in the chance that two more rate cuts of the US and the central banks of the US and the eurozone are. “The pound is enjoying a strong momentum, but the move starts to look a bit stretched out,” analysts at BBVA said in a note on Monday. At the euro, the pound held stable at 83.95 pence. This article was generated from an automated news agency feed without edits to text.