Pound (GBPUSD=X, GBPEUR=X)

The pound remained relatively unchanged against the dollar today as markets prepared for the eagerly anticipated unveiling of president Donald Trump's “liberation day” tariffs. Investors are awaiting the full details of the tariff plan, which will be revealed later this afternoon in a White House announcement at 4pm local time (9pm UK).

According to Kamal Sharma, FX strategist at Bank of America, while the UK could face a number of scenarios from the tariff announcement, the general expectation is that the country will largely escape the worst effects. That is thanks to its relatively small trade imbalance with the US, which could provide some relief for the pound. "That should be GBP supportive," Sharma noted.

However, the potential for a blanket tariff, which could apply to a broad range of imports, still poses considerable challenges for UK exporters. Such a move would put pressure on the pound's current resilience to trade tariffs, particularly as market uncertainty looms.

The US Dollar Index (DX-Y.NYB), which measures the greenback against a basket of six major currencies, was steady at 104.01, with traders opting for caution ahead of the tariff announcement. A hesitant market approach reflects concerns over the broader implications of Trump’s policies.

Read more: FTSE 100 LIVE: Stocks slip as markets await Trump's 'liberation day' tariff announcement

The Office for Business Responsibility (OBR) has warned that the president’s trade measures could significantly strain the UK economy, potentially eroding the government’s fiscal buffer and reducing the GDP by up to 1%.

Such an outcome could prompt the Bank of England to swiftly adopt a more dovish stance on monetary policy to support economic growth. Traders are already factoring in the likelihood of two interest rate cuts this year, with the first having already occurred in early 2025.

Meanwhile, the pound also traded cautiously against the euro, hovering at €1.1963 as markets awaited further clarity.

Gold (GC=F)

Gold prices moved higher again after setting a new record of $3,148.8 an ounce yesterday, as investors rush into safe assets.

Spot gold rose 0.1% to $3,128.13 per ounce, while gold futures climbed 0.2%% to $3,153.40.

"The market could test $3,400/oz over the next nine months in a bull case scenario," said Aakash Doshi, global head of gold strategy at State Street Global Advisors.

According to the Washington Post, Trump plans to impose a 20% tariff on most goods imported to the US, a move that could escalate inflation, dampen economic growth, and worsen global trade disputes.