The dollar has fallen against the pound this morning over fears of raised tensions with China, after Donald Trump called the WHO a ‘puppet’ of Beijing. Yesterday, China announced 80% tariffs on Australian barley, sparking fears that trade wars with the US, too, could return.
There was some slight positivity in data releases yesterday, with unemployment figures from the UK unexpectedly falling by 0.1%.
The pound is also benefitting from the euro’s weakness, as uncertainty continues over how the EU will bail out its hardest-hit countries. Macron and Merkel have proposed a €500 billion package to be added to the European budget, rather than repaid by the beneficiaries. Austria, the Netherlands, Denmark and Sweden have signalled their reservations, meaning it could be another dead end.
Make sure you put in place risk management strategies to protect your money. Speak to your Personal Trader on 020 7898 0541 to find out more about locking in a fixed exchange rate with a forward contract.
