The pound euro (GBP/EUR) exchange rate is rising for a second day.
The euro is falling after President Trump threatened 200% trade tariffs on EU wine and champagne imported into the US. The threat comes after the EU retaliated against Trump’s 25% steel and aluminium tariffs with duties on €26 billion worth of US imports.
Theses tit for tat moves threaten spill over in a full on trade war.
The pound is rising as the UK side steps a trade war by not applying reciprocal tariffs on the US.
Separately, the UK housing market is showing signs of cooling. According to RICS, UK house prices fell in February with demand at its weakest level since November.