Donald Trump, along with his aggressive commerce coverage, can compensate for the weakening of the British pound attributable to Brexit. This might carry sterling again to the degrees earlier than the UK left the EU, specialists say.
Analysts observe that the lack of the greenback’s «exclusivity» standing as a result of unpredictable tariffs of the White Home is placing strain on the US foreign money. If the greenback weakens, the pound will develop into one of many principal beneficiaries.
After the Brexit choice in 2016, the pound fell sharply in opposition to the greenback as traders questioned the soundness of the UK as a protected haven for property. Nonetheless, Trump’s commerce coverage has modified this steadiness, threatening the established world financial order.
If the US faces the lack of its «privileged haven» standing, as occurred with Britain, it is going to trigger a structural weakening of the greenback. On this case, the pound/greenback pair might return to the vary of $1.50-$1.80, typical of the pre-Brexit stage.
