The negotiation session on Thursday saw a series of interesting movements, one of which was the Ascending movement in the EUR/GBP. At first glance, this was a bit surprising, says Commerzbank’s currency analyst Michael Pfister.
The 20% tariff on EU imports was largely expected
“After all, the United Kingdom only obtained the minimum tariff of 10%, while the EU obtained twice that, and at the same time, the German automotive industry, in particular, received tariffs of up to 25%. The relative performance of the euro is probably due to the fact that the C, while the United Kingdom was always expected to be exempt from tariffs given its deficit by current account with the US that does not help the United Kingdom be relatively less affected than the EU. “
“But tariffs raise a series of questions that go beyond the performance of the sterling pound. The objective of the US government by imposing reciprocal tariffs is to eliminate the current account deficit with other countries, that is, the objective of the US government seems They export are also being symmetrically punished (for example, Brazil in addition to the United Kingdom). “
“In fact, it would make sense that the United Kingdom imports fewer US goods (or significantly more assets to the US, for example, from the EU, which has a higher tariff) and thus had an over -account surplus with the US USA But it shows how little these tariffs have been thought in some cases. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
