GBP Hold Gains in Cautious of US-China Trade War
As the US is expected to implement additional tariffs on China soon, the GBP/USD exchange rate on the 17th is expected to rise due to the financial market uncertainty.
Last week, it was reported that US trade negotiations would resume, but the US is likely to plan additional tariffs on Chinese products worth $ 200 billion. Therefore over the weekends, foreign financial markets were dominated by uncertainty. In the foreign exchange market, the dollar strengthened due to the demand for safe assets. The euro / dollar rose to $ 1.1620 late last week and traded at $ 1.1620, while the dollar / yuan exchange rate rose to 6.88 yuan during the weekend.
The GBPP / USD, which is expected to rise on this day, is likely to maintain its upward trend amid the mid-term trade conflict. The United States is likely to implement additional tariffs on the 17th at local time as soon as possible, and it is anticipated that the negotiations for the US-China trade, scheduled for late this month, may be canceled.
If the dollar / yuan exchange rate rises further to 6.9 yuan or if the domestic stock market rebounds in the latter half of last week, the dollar / won exchange rate is likely to rise further.