Pound Sterling Steadies Amid Looming Tariff Threats from Trump

The Pound Sterling is experiencing volatility as U.S. President Donald Trump prepares to announce reciprocal tariffs, with the currency trading around 1.2900 to 1.2940 against the U.S. Dollar. Analysts suggest that the UK's balanced trade position with the U.S. may mitigate the impact of these tariffs, leading to a gain of over 2.8% for the Pound against the Dollar in March. Prime Minister Keir Starmer engaged in 'productive negotiations' with Trump to potentially avoid tariff escalation, while the European Union and other nations brace for retaliatory measures that could spark a global trade war. Economists warn that Trump's tariffs could hamper global economic growth, and Goldman Sachs has increased the likelihood of a U.S. recession to 35% due to diminishing business confidence. The Pound's performance against the Euro has been less favorable, reflecting a 1.4% decline amid the Euro's rally fueled by Germany's fiscal reforms. Market participants remain cautious, awaiting further developments on Trump's tariff strategy and its implications for international trade.