German Central Bank: Trump's tariff policy has a mixed impact on the pound

Andrew Cossor of the German Central Cooperative Bank stated in a report that the impact of Trump's new tariff threats on the pound is mixed. The analyst said, "The negative impact is the risk of further economic weakening and more interest rate cuts, but the positive impact is currency diversification." He said that with weak economic growth and further loosening of monetary policy, the pound seems more likely to weaken slightly against the dollar. Cossor also mentioned that with major eurozone countries facing similar risks, the outlook for the euro-pound exchange rate is uncertain and unlikely to see significant fluctuations. He added that the reckless and illegal actions of the United States will weaken people's confidence in the country, its debt, and its currency. In this scenario, investors may sell the dollar, leading to an appreciation of the pound.