Forex News: Pound Drops As Trade Tensions Renew

Pound Drops As Trade Tensions Renew

(RTTNews) - The pound fell against its major counterparts in the New York session on Friday, as trade tensions escalated after the U.S. President accused China of violating trade agreement reached earlier this month.

Trump said in a social media post that China had "totally violated" its agreement with the US.

"Everybody was happy! That is the good news!!!" Trump said. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!"

Trump's claim comes after Treasury Secretary Bessent said in a Fox News interview on Thursday that U.S.-China trade talks "are a bit stalled."

The pound fell to 8-day lows of 0.8436 against the euro and 1.1060 against the franc. The next possible support for the currency is seen around 0.86 against the euro and 1.09 against the franc.

The pound edged down to 1.3447 against the greenback, from an early 2-day high of 1.3510. The currency may find support around the 1.31 level.

The pound retreated to 193.63 against the yen. This may be compared to an early 3-day low of 193.40. If the currency falls further, it is likely to test support around the 190.00 region.

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