Tuesday was marked by the strengthening of the British pound, which recovered some of its losses against the euro amid a decrease in market volatility observed in recent weeks. Fresh macroeconomic data points to a possible weakening of the UK labor market ahead of an expected tax hike for employers this month. Nevertheless, wages in the country remain stable, which creates additional challenges for the Bank of England. According to current market indicators, traders are 90% confident of a quarter-point interest rate cut at the meeting in early May, with a forecast for two more cuts after that. It is worth noting that the UK is less susceptible to fluctuations in tariffs imposed by US President Donald Trump, compared with regions such as China and Europe. However, the growing threat of a global recession due to the escalation of the trade war has a negative impact on investor sentiment around the world. The pound sterling strengthened by 0.45% against the US dollar, reaching the level of $ 1.3243, and also rose against the euro, while the EUR/GBP exchange rate decreased by 0.5% to 85.67 pence.
