The pound rose to the highest level in the four -month -old US dollar with concerns about the escalating trade war war Donald Trump, fears of the American recession.
The British pound rose 0.1 % on Tuesday, exceeding $ 1.30 for the first time since November, as a strict US President on customs tariffs global markets.
US Treasury Secretary Scott Bessin feed the uncertainty during the weekend, and warned that “there are no guarantees” that the United States can avoid economic shrinkage. However, he later sought to reassure investors by saying that the main economy has been “in good health”.
On Monday, Mr. Trump doubled his commercial policies, and he did not undertake any exemptions for his metal tariff and reaffirm the commitment to mutual definitions on a large scale that is scheduled to enter April 2.
Central banks were left on both sides of the Atlantic Ocean in waiting and vision, as analysts expect the Bank of England and the US Federal Reserve to keep interest rates in their upcoming meetings.
Market analysts indicate that the flexibility of the British pound may also stem from expectations that the UK will be less exposed to the decline than Trump's identification battles.
“American data indicates a modest trade surplus with the United Kingdom, although British numbers indicate the opposite.
Meanwhile, global investors turn away from American assets with record numbers. According to the last survey of the Director of the Bank of America Fund, collective migration from the United States was the largest ever, as traders seek a safer floor in European and British markets.
“The market responded from the increasing frustration of Trump's introductory drama,” said Harald Berlink, a Sarina Asset partner.
The survey found that this trip to European stocks prompted the investments of the fund managers in the euro zone companies to its highest levels since July 2021.
American technology shares take the biggest blow
The sale was especially brutal for American technology shares, which was at the forefront of the last bull market. S&P 500 fell by more than 7 % over the past month, as technology giants were exposed to some of the most severe losses.
NVIDIA, Microchip Powerhouse, witnessed that its price stumbled by 14 % last month, while Palantir Technologies, the software company that AI moved in which Peter Thiel participated, decreased by 30 %.
Bank Of America described the current contraction as “bull's crash”, noting that investor morale towards the American economy is at its lowest level since November 2023.
Bruneo Sheniller, the administrative partner of Earlen Capital Management, warned that fears of stagnation and deepening trade tensions have been shaken by confidence in the “American exception”, a belief that he supported in the march of the previous securities market.