Forex News: Pound Falls As European Shares Extend Losses On

Pound Falls As European Shares Extend Losses On Growth Worries

(RTTNews) - The British pound weakened against other major currencies in the European session on Friday, as European shares traded lower, extending steep losses from the previous session after U.S. President Donald Trump announced significantly harsher-than-expected tariffs.

Investor sentiment remained fragile as U.S. President Donald Trump's reciprocal tariffs fueled concerns about inflation and growth.

According to UBS, the latest tariff measures unveiled by Trump may knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5 percent.

However, Trump has downplayed the impact. "The markets are going to boom, the stock is going to boom, and the country is going to boom," Trump said.

As growth worries mount, there is now increased speculation that the Federal Reserve could accelerate interest rates to make it easier for U.S. companies and households to borrow and spend.

Investors await the monthly U.S. jobs report as well as remarks by Federal Reserve Chair Jerome Powell later in day for further direction.

In the European trading today, the pound fell to a 2-1/2-month low of 0.8472 against the euro, nearly a 1-month low of 189.84 against the yen and nearly a 3-month low of 1.1094 against the Swiss franc, from early highs of 0.8434, 191.77 and 1.1251, respectively. If the pound extends its downtrend, it is likely to find support around 0.86 against the euro, 187.00 against the yen and 1.10 against the franc.

Against the U.S. dollar, the pound edged down to 1.2976 from an early high of 1.3114. The pound may test support near the 1.25 region.

Looking ahead, Canada and U.S. jobs data for March and U.S. Baker Hughes oil rig count data are slated for release in the New Yok session.

Markets in mainland China, Hong Kong and Taiwan closed for Tomb Sweeping Day holiday.

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