The British book remained stable against the dollar on Thursday, but maintained near its highest level in three years reached at the start of the week, investors fled the American currency following the pricing measures announced by US President Donald Trump.
A survey published Thursday confirmed that British manufacturing activity has contracted for the seventh consecutive month in April, stressing the effects of customs duties imposed by Mr. Trump and the increase in taxes for British employers on economic activity.
The pound sterling was exchanged at 1.3327 dollars, down less than 0.1 % over the day. It reached its highest level on Monday since February 2022 on Monday, after having increased by 3.2 % last month, its highest monthly increase against the dollar since November 2023.
The American motto was one of the main victims of Trump’s trade policy, the downgrafts on customs duties that have shaken trust and reduces growth forecasts.
“We plan that the book will remain firm against the US dollar throughout the year, even if some short -term setbacks could occur after the recent recovery,” said UBS exchange strategists in a note.
Paying on Thursday, attention was paid to local elections in certain regions of the United Kingdom, which generally do not affect the markets, but can give indications on future electoral trends.
The right -wing populist party Reform UK should achieve good results, taking a blow to the Labor Party in power and the Conservatives, the main opposition force.
-Chris Turner, responsible for the exchange strategy at ING, also stressed that the summit between the United Kingdom and the European Union planned this month could be an event to be monitored, as the United Kingdom is expected to sign a new security and defense pact with the Union.
“Closer European relations are generally favorable to the pound sterling,” said Turner.
The pound sterling was exchanged in the last rating at 84.99 pence for a euro, practically unchanged during the day.
It fell 1.5 % compared to the euro last month, its highest monthly drop in the single currency since December 2022.
The euro was one of the main beneficiaries of the recent disinterest in the dollar, appreciating compared to most other major currencies throughout April.
“We believe that the global investment environment will be the engine of the euro compared to the pound sterling in the coming months,” said Mohamad al-Saraf, research partner on the currency at DAKE BANK.
“If we see an high uncertainty, an enlargement of credit spreats and a positive correlation with the negative environment, as we think, we favor a lower book,” added Mr. Al-Saraf, who plans that the Euro will reach 88 pence on the horizon six and twelve months.
