The Pound Sterling (GBP) rises during the North American session against the Greenback even though US President Donald Trump enacted automotive tariffs on all cars made outside the United States (US). Initially, risk appetite deteriorated, but it has improved. Therefore, high-beta currencies like the Sterling advance, with GBP/USD trading near 1.2930, up 0.35%.
GBP/USD rises as risk appetite rebounds, while UK seeks carve-out from new US trade measures
On Wednesday, Trump announced 25% duties on imported automobiles, effective April 2. He said that he would announce additional tariffs next week.
This triggered a reaction worldwide, including in the United Kingdom (UK). Finance Minister Rachel Reeves said they are working with the White House to secure an exemption from US auto tariffs.
Data from the Society of Motor Manufacturers and Traders revealed that the US is Britain's second-largest car export market after the European Union (EU).
Aside from this, US economic data revealed that the number of Americans applying for unemployment benefits rose below estimates of 225K, increasing by 224K in the week ending March 22. Other data showed that the GDP for the last quarter of 2024 was confirmed at 2.3% QoQ, up from 1.9%, slightly below estimates of 2.4%, and Pending Home Sales dipped 3.6% YoY in February, though improved compared to January's 5.2% plunge.
Ahead this week, the UK economic docket will feature Retail Sales data. Across the pond, investors eye speeches by Federal Reserve (Fed) officials alongside the release of the Fed's favorite inflation gauge, the Personal Consumption Expenditures (PCE) Price Index.
Source: Fxstreet
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