The Pound Sterling (GBP) extends its winning streak for the fifth trading day against the US Dollar (USD) at the start of the week. The GBP/USD pair jumps to near 1.3200 in Monday's North American session as investors have dumped the US Dollar on the tit-for-tat tariff announcement between the United States (US) and China.
The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, declines to near 99.00, the lowest level seen in three years.
US President Donald Trump's announcement of a 90-day pause on reciprocal tariffs last week has significantly diminished the risk of a US recession.
However, an exception for China has still kept the US Dollar on its toes. China raised counter-tariffs on US goods imports to 125% effective on Saturday.
The motive behind Trump's economic policies is to support domestic companies to onshore manufacturing facilities. However, business owners appear reluctant as they worry that Trump could reduce import duties again after securing a better deal from its trading allies, including China.
Source: FXStreet
