Markets have rallied across the world following news that the United States and China have freached a trade deal by pausing reciprocal tariffs for 90 days.
As the dollar rose, the pound value sank 1% to below $1.31, a low not seen in nearly a month.
It’s a different story against the euro, however, with the pound at a one-month high of €1.186.
The UK’s benchmark stock index, the FTSE 100, is up a slight 0.4% after falling back from the initial spike this morning, following the news.
Drug maker AstraZeneca was one of the biggest fallers after Trump announced an executive order to cut drug prices, causing it to lose more than 3%.
The larger and more UK-focused FTSE 250 gained 1.25%.
Oil prices were also boosted by the news as a barrel of Brent crude oil climbed to $66.27, a high not seen since late last month.
More expensive oil can signal that investors are confident about the world economy.
European stocks are a near sea of green with most stock indexes of major economies on the continent posting gains.
France’s CAC 40 is up 1.25%, Germany’s DAX rose 0.36%, and Spain’s IBEX 35 rose 0.3%. The pan-European index, the Stoxx 600 gained 0.74%.
