FX.co ★ Sterling Rises to Over 6-Month High

The British pound has risen to $1.317, marking a six-month high, primarily due to a weakened US dollar amidst ambiguity surrounding US trade policy. The markets responded to President Trump's provisional suspension of tariffs on Chinese imports such as smartphones and computers, although additional tariffs on semiconductors and potentially on phones are anticipated shortly. This uncertainty has put downward pressure on the dollar, thus favoring the sterling. Despite the pound's strength, market analysts still foresee the Bank of England enacting a 75-basis-point rate cut this year. Bank of England policymaker Megan Greene highlighted the unclear impact of tariffs and currency fluctuations on UK inflation, contributing to the prevailing uncertainty. Attention is now directed towards the forthcoming UK employment and inflation data scheduled for release later this week.