An expected trade agreement between America, Britain and sterling benefit economy

The New York Times and Politico website reported on Wednesday, citing well -informed sources, that US President Donald Trump is expected to announce a trade agreement between the United States and Britain today.

Trump wrote on the Truth Social platform earlier that he would hold a press conference at the Oval Office at (14:00 GMT) today, Thursday, regarding “a huge trade agreement with representatives of a large country with its position.”

He did not disclose more details, but he said that the agreement would be “the first of many.”

A White House spokesman relied on commenting on the New York Times report.

A British official said on Tuesday that the two countries have made good progress in reaching a trade agreement that may include low steel and cars.

The Trump administration’s senior officials have been involved in a series of meetings with commercial partners since the President imposed 10% customs duties on most countries on April 2, in addition to “counter” fees on many commercial partners, despite the suspension of these customs tariffs for a period of 90 days later.

Britain has not been subjected to additional customs duties, because its imports from the United States are more than its exports to it.

Trump imposed 25% fees on cars, steel and aluminum, by 25% on Canada and Mexico, by 145% on China.

Trump said on Tuesday that he would review possible commercial agreements with senior administration officials in the next two weeks to make a decision on them.

Last week, Trump said that there are “possible” agreements with India, South Korea and Japan.

The British pound jumps

The British pound jumped today, Thursday, to climb with the Australian dollar after Trump Donald said that he would announce a “major trade agreement” later today, at a time when the New York Times suggested that this agreement be with Britain.

• The sterling pound rose 0.4% to $ 1.3341 by 02:30 GMT, even with widespread expectations that the Bank of England will reduce interest rates a quarter of a point later today.
• The Australian dollar earned up to 0.6% against the US dollar.
• The New Zealand dollar is offered by 0.5%.

Before the New York Times report, analysts referred to opportunities to reach a trade agreement with the United States after Britain had entered into a free trade agreement with India earlier in the week.

Agreements will not be free

“The market is working with the idea that any trade agreement is a good news, because it provides a certain degree of clarity and can provide a model for others to follow,” said Rodrigo Catterrel, chief foreign exchange market analyst at the National Bank of Australia.

But he indicates at the same time that reaching a trade agreement with Britain is one of the easiest negotiations, while talks with Europe and China are in particular more complicated.

“The problem lies in the details. These agreements will not be free,” Katril added.

Investors will closely monitor any indications of a breakthrough when US Treasury Secretary Scott Besent, chief trade negotiator Jimson Jarir, meets with Lee Feng, Vice President of the State Council on Saturday in Switzerland.

Trump said on Wednesday that Beijing was the one who initiated the talks, adding that he was not ready to reduce customs duties on Chinese goods to pay negotiations.

The yuan settles and the dollar is declining

The Chinese yuan did not witness a significant change to settle at 7,2325 for The dollar in foreign transactions a day after it decreased 0.26%.

The dollar fell against most major currencies today, Thursday, Abstracting some of his gains that he achieved yesterday, after he warned a council Federal reserve is one of the increasing risks of the economy due to the rise Inflation and unemployment.

The Open Market Committee of the Reserve Council has kept the interest rates unchanged, as it was widely expected, but its president, Jerome Powell, said that it is unclear whether the economy will continue its fixed growth or will be affected by the increasing economic fog and the potential increase in inflation.

• The dollar index, which measures the performance of the currency against 6 main currencies, decreased by 0.2% to 99.682, to redeem about two thirds of the gains it achieved a day ago.
• As for the euro, it increased 0.2% to $ 1.1327 to reflect its direction after a decrease of 0.56% yesterday, Wednesday.
• The dollar fell 0.1% to 143.63 yen.
• 0.2% decreased to 0.8229 Swiss francs.