Pound Gains Amidst Tariff Tensions, Britain's Economic Resilience Shines

The British pound strengthened against the euro and steadied against the U.S. dollar as recent economic data suggests resilience in the UK economy. Despite U.S. tariffs raising concerns, easing UK gilt yields and potential trade deals bolster the currency's performance ahead of the Easter break.

The British pound made gains against the euro on Thursday, maintaining its position against the U.S. dollar following positive economic data that alleviated concerns about the UK's economic standing amid U.S. tariff challenges.

Concerns over the impact of U.S. tariffs on growth and inflation have prompted investors to shy away from U.S. assets, including its dollar, allowing the pound to stabilize at $1.3243 and achieving eight consecutive days of gains against the U.S. currency.

Amid subdued trading activity leading to the long Easter weekend, the euro fell to 85.90 pence as anticipation grew for a European Central Bank rate cut. UK's strong wage growth and the potential for a U.S.-UK trade deal have further supported the pound's rally, despite fewer job vacancies and increased employer taxes.

(With inputs from agencies.)