The Pound Sterling clings to early gains, extending its advance to two days versus the US Dollar as tariffs enacted by US President Donald Trump against Mexico, Canada, and China come into effect.
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Pound Sterling (GBP) is moderately firmer but, in the absence of any major news at home, the pound’s performance reflects broader USD weakness more than anything, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The EUR is benefitting from the softer overall USD tone and market focus on the likelihood of increased European government (defence) spending to extend its recovery back through low 1.05 area where EUR gains have been capped so far this year, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The Canadian Dollar (CAD) is one of the better-performing currencies on the day so far, reversing the slide that occurred following yesterday’s tariff headlines to trade back to the low 1.44 area where it spent most of Monday, Scotiabank's Chief FX Strategist Shaun Osborne notes.
In an interview with Fox News on Tuesday, US Treasury Secretary Scott Bessent said that they are set on bringing interest rates down, as reported by Reuters.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, briefly broke below 106.00 in a volatile Tuesday after United States (US) President Donald Trump confirmed that tariffs on Canada, Mexico
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