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BUZZ-COMMENT-Trump-Starmer warmth is positive for King's currency

ReutersFeb 28, 2025 8:36 AM

- Sterling bulls have reasons to be cheerful after Thursday's White House meeting between Donald Trump and Keir Starmer, which included Trump accepting an invitation from King Charles for a future state visit.

The bonhomie between the U.S. President and UK Prime Minister suggests Britain might be spared tariffs on goods exports to the United States.

Trump said the U.S. and Britain are negotiating a bilateral trade agreement, saying such a deal could help avert U.S. tariffs.

The president's intimation came 24 hours after he threatened to impose 25% tariffs on imports from the European Union - a threat which hurt the euro.

The contrast between Trump's attitude towards tariffs on British and EU goods is a source of support for GBP/EUR, which scaled a 10-week peak of 1.2132 on Thursday (1.2161 was December's 33-month high).

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