The pound sterling traded steadily on Monday, poised for its strongest monthly performance against the US dollar since late 2023, reflecting a shift away from US assets in April. Sterling rose 0.3 per cent to $1.3345, marking a 3.1 per cent gain for the month, the largest since November 2023. However, the pound has faced challenges against the euro, which gained nearly 2 per cent in April, its biggest monthly rise since December 2022. Sterling's recent strength has been driven by investor moves away from the dollar, partly due to concerns over President Donald Trump's tariffs. Analysts from Barclays remain bullish on the pound, particularly against the euro, citing the UK's relative resilience to the tariffs compared to the eurozone. Traders are betting on approximately 85 basis points of rate cuts from both the Bank of England and the US Federal Reserve this year, with market expectations for the BoE to be slower in cutting rates than other central banks. Attribution: Reuters Subediting: Y.Yasser
