Ella 
GBP/USD rebounded to near 1.3270 during early Asian trading on Thursday, snapping two days of losses. The U.S. dollar (USD) weakened against the British pound due to uncertainty surrounding Trump’s trade policy.
U.S. President Donald Trump’s administration said it had spoken to 90 countries about the tariffs. The United States will set tariffs on China in the next two to three weeks, depending on when China’s tariffs are able to be reduced.
Separately, Trump said on Wednesday that a 25% tariff on cars imported into the United States from Canada could be raised as he pushes to bolster U.S. auto production and reduce reliance on foreign-made vehicles. Uncertainty about Trump’s tariffs dampened the economic outlook and market sentiment, which in turn put pressure on the dollar.
On the other hand, rising bets on a rate cut by the Bank of England at its May meeting could weaken the British pound (GBP) in the near term. Financial markets have priced in an almost 82% chance of a Bank of England interest rate cut next month, according to LSEG, as the impact of Donald Trump’s evolving trade war continues to be felt across the global economy.
Weekly U.S. jobless claims will be released later on Thursday, along with data on the Chicago Federal Reserve’s national activity index, durable goods orders and existing home sales. On Friday, UK retail sales data for March will be in focus, expected to show a 0.4% month-on-month decline following a 1.0% rise in February.
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