Pound Moves Lower On Trade War Fears
(RTTNews) - The pound fell against its most major counterparts in the New York session on Tuesday amid concerns that tariffs by U.S. President Donald Trump could trigger a slowdown in global growth.
Trump's long-threatened tariffs against Canada, Mexico and China went into effect today.
Trump imposed 25 percent tariffs on imports from Mexico and Canada and 20 percent levy on Chinese goods.
Canada announced 25 percent tariffs on $107 billion worth of U.S. goods, with $20.7 billion in immediate effect. Mexican President Claudia Sheinbaum said her country is preparing countermeasures.
China has announced 15 percent tariffs on U.S. chicken, wheat, corn and cotton, plus 10 percent cent tariffs on soybeans, pork, beef and dairy beginning March 10.
The pound weakened to a 4-day low of 188.25 against the yen and a 1-week low of 1.1298 against the franc. The currency is likely to challenge support around 185.00 against the yen and 1.11 against the franc.
The pound declined to a 6-day low of 0.8287 against the euro and held steady thereafter. The currency is poised to challenge support around the 0.84 level.
In contrast, the pound climbed to near a 3-month high of 1.2753 against the greenback. If the currency continues its uptrend, 1.30 is possibly seen as its next resistance level.
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