The Pound Sterling remains firm, hovering around 1.2950 against the US Dollar, virtually unchanged, as traders digest the latest inflation report from the United States (US), amid uncertainty about a potential trade war escalation following Trump's imposition of tariffs on cars.
San Francisco Fed President Mary Daly maintains that two rate cuts this year remain a reasonable projection, but with robust economic indicators, policymakers can hold off on reducing rates until they evaluate how businesses adapt to tariff costs.
Canadian Prime Minister Mark Carney cautioned markets that the Canadian government is both ready and willing to start retaliatory trade actions against US President Donald Trump.