The British pound fell to $1.242 on concerns over escalating trade tensions, especially after China retaliated against US tariffs.
Pound drops, BoE cuts likely
While a temporary tariff delay from Mexico and Canada provided some respite, investors are wagering that the Bank of England will respond to the economic fallout by cutting interest rates. Markets are currently anticipating at least three rate cuts this year, with the possibility of a fourth cut becoming increasingly likely.
BoE rate cut to 4.5% a certainty
A reduction to 4.5% at Thursday's meeting is widely considered a near certainty.
