The pound Sterling edged 0.20 per cent lower to $1.3409 versus the dollar on Tuesday but remained near its highest level since February 2022, supported by expectations of resilient UK fundamentals ahead of critical US economic data releases. The pound is on track for a 3.8 per cent monthly gain, its strongest performance since November 2023. The dollar clawed back some losses following reports that the US may soften proposed tariffs, though concerns linger over an escalating trade rift with China. Markets now await the US jobs report, first-quarter GDP estimates, and core PCE inflation data for direction. Despite the slight dip, analysts argue sterling is undervalued against the euro, which fell to 84.84 pence, citing the UK's high interest rates and relative insulation from US trade tensions. British finance minister Rachel Reeves said stronger EU ties remain a top priority, as London seeks to offset US tariff risks and attract tech investment through an economic pact with the Trump administration. Attribution: Reuters Subediting: Y.Yasser
