Sterling Shows Resilience Amidst Global Trade Tensions

Sterling regained ground against the dollar despite early losses, driven by weakened UK business activity due to global trade tensions. Though initially dropping, the pound stabilized, reflecting temporary market reactions influenced by U.S. policy and resilient, albeit cautious, sentiment towards the UK economy.

Sterling strengthened against the dollar on Wednesday despite initial losses attributed to declining UK business activity amid global trade tensions.

The pound settled at $1.3337 against the dollar, showing resilience after an early 0.7% drop. This fluctuation occurred following positive remarks from U.S. President Donald Trump regarding potential trade deals.

Market outlook for U.S. assets remains uncertain. Britain's private sector showed signs of strain, with export orders falling sharply and business costs rising. Concerns grow over a potential economic downturn, highlighted by disappointing budget deficit projections for 2024/25.

(With inputs from agencies.)