Pound gains ground against dollar amid uncertainty over US trade policy

On Thursday, the British pound rose to 1.348 against the US dollar. Experts believe this is due to the uncertain situation with Donald Trump’s trade policy after a court said the tariffs enacted were against the law.

George Vessey of Convera noted that the tribunal's ruling to reverse American duties has enabled the pound to recalibrate its formerly adopted positions. Nevertheless, the positive trend persists, bolstered by favorable economic indicators. According to Reuters, UK retail sales from the previous week were higher than what experts thought they would be.

Moreover, the trade agreement between the UK and the US that just ended has made the pound stronger. The British currency is gaining ground by this deal, as commented by Kenneth Broux from Societe Generale. The Bank of England's adjustments to its interest rate forecasts, prompted by the release of inflation data, have caused traders to abandon their predictions of reduced borrowing costs in June, providing further support to the pound.