Pound Plummets Amid Rising Trade Fears

The British pound lost significant ground during Friday’s New York session as trade tensions intensified. The situation escalated after the U.S. President sharply accused China of completely breaking a recent trade deal.

In a social media post, the president claimed that China had utterly violated the agreement, turning an initially positive deal into a sour situation.

Adding fuel to the fire, Treasury Secretary Bessent mentioned in a Fox News interview that the trade talks between the U.S. and China have stalled.

The pound slid to an eight-day low, dipping to 0.8436 against the euro and 1.1060 against the Swiss franc. Analysts expect support to be found near 0.86 for the euro and 1.09 for the franc.

Against the U.S. dollar, the pound dropped from an early two-day high of 1.3510 to 1.3447, with support anticipated around 1.31.

Similarly, the sterling fell against the yen, reaching 193.63 compared to a previous three-day low of 193.40. Should the decline continue, support is likely to be tested around the 190.00 level.