Today was supposed to see the end of US President Donald Trump’s 90-day trade tariff pause. But, with only one trade agreement officially signed off and implemented, that with the UK, the President saw fit to extend the pause to August 1.
Although, for good measure, Trump added fresh confusion into the mix by announcing new massive tariffs on copper and drug imports.
The surprise reveal of the new tariffs sent the pound, euro and a bundle of other currencies down against the dollar as traders raced to buy copper before the price went up.
While this may all sound quite disconnected from day-to-day spending and using your money abroad, this confusion has injected instability into the market. It’s much harder to predict exchange rates today than it was even last week.
To secure certainty for your budget, lock in today’s GBP/EUR rate with a call to your account manager on 020 8003 4915.
For instance, yesterday saw the pound drop 0.3% against the dollar, more than twice that suffered by the euro. This is even with the UK’s trade agreement signed with the US. Clearly, there is little insulate a country from global economic shocks.
It’s difficult to know what the coming weeks will bring, there may be trade deals signed ahead of the new August 1 deadline, and that may bring stability. But, with so little agreement reached in the previous 90 days, there is no guarantee.
Instability and unpredictability are becoming the watchwords of 2025, and there is no sign of that stopping.
