Following President Trump's announcement of less harsh tariffs on Chinese goods, the EUR/GBP is rising as risk sentiment improves.
"President Trump’s policies are boosting the likelihood of an earlier-than-expected financial collapse," warned Friedrich Merz, the German Chancellor-in-waiting.
In light of growing US-China trade concerns, UK 10-year gilt yields increased to 4.76%, suggesting ongoing volatility in global bond markets.
For the third straight day, the EUR/GBP is still rising, trading at about 0.8670 on Monday during Asian hours. Following US President Donald Trump's announcement late Sunday of less harsh tariffs on Chinese imports, particularly semiconductors and electronics, the currency cross rises with improved risk sentiment. Trump clarified prior rumors regarding exemptions, however, by stating that these products will continue to be subject to the current 20% fentanyl tariffs rather than the previously proposed 145% levies.
German Chancellor-in-waiting Friedrich Merz voiced his disapproval of Trump's economic strategy in an interview with Handelsblatt on Saturday, saying, "President Trump's policies are raising the chance that the next financial catastrophe will come sooner than planned." Merz added, "Zero percent tariffs on everything—that would be beneficial for both sides," in support of a new transatlantic trade pact.
As the Pound Sterling (GBP) continues to be supported by rising UK 10-year gilt yields, which hit 4.76% amid continued volatility in global bond markets led by intensifying US-China trade concerns, the upward potential for the EUR/GBP cross may be limited. Following President Trump's earlier decision to raise tariffs on Chinese imports to 145%, China's Ministry of Finance announced a dramatic increase in charges on US goods, increasing them from 84% to 125%.
According to UK GDP figures, the economy grew by a more robust than anticipated 0.5% in February, which was the highest monthly rise in almost a year. Gains were seen in a number of important sectors. Investors lowered their expectations for rapid rate reduction from the Bank of England (BoE) as a result of the upside surprise, which was partially driven by a spike in pre-tariff manufacturing. Markets still expect at least three quarter-point cuts this year, though.
"President Trump’s policies are boosting the likelihood of an earlier-than-expected financial collapse," warned Friedrich Merz, the German Chancellor-in-waiting.
In light of growing US-China trade concerns, UK 10-year gilt yields increased to 4.76%, suggesting ongoing volatility in global bond markets.
For the third straight day, the EUR/GBP is still rising, trading at about 0.8670 on Monday during Asian hours. Following US President Donald Trump's announcement late Sunday of less harsh tariffs on Chinese imports, particularly semiconductors and electronics, the currency cross rises with improved risk sentiment. Trump clarified prior rumors regarding exemptions, however, by stating that these products will continue to be subject to the current 20% fentanyl tariffs rather than the previously proposed 145% levies.
German Chancellor-in-waiting Friedrich Merz voiced his disapproval of Trump's economic strategy in an interview with Handelsblatt on Saturday, saying, "President Trump's policies are raising the chance that the next financial catastrophe will come sooner than planned." Merz added, "Zero percent tariffs on everything—that would be beneficial for both sides," in support of a new transatlantic trade pact.
As the Pound Sterling (GBP) continues to be supported by rising UK 10-year gilt yields, which hit 4.76% amid continued volatility in global bond markets led by intensifying US-China trade concerns, the upward potential for the EUR/GBP cross may be limited. Following President Trump's earlier decision to raise tariffs on Chinese imports to 145%, China's Ministry of Finance announced a dramatic increase in charges on US goods, increasing them from 84% to 125%.
According to UK GDP figures, the economy grew by a more robust than anticipated 0.5% in February, which was the highest monthly rise in almost a year. Gains were seen in a number of important sectors. Investors lowered their expectations for rapid rate reduction from the Bank of England (BoE) as a result of the upside surprise, which was partially driven by a spike in pre-tariff manufacturing. Markets still expect at least three quarter-point cuts this year, though.
