Pound Rises After U.K. PM Starmer Comments

The British pound strengthened against most major currencies in the European session on Tuesday, after the U.K. Prime Minister Starmer affirms that trade relations with the U.S. are positive.

Speaking at a meeting in London's historic finance centre with leading chief executives, British Prime Minister Keir Starmer said the U.K. economy is beginning to improve on continuous efforts to reset his government's relationship with businesses.

Starmer said that we already have a "huge amount of trade" with the US and that the foundation is in place for even "better trading relations".

"Growth is the number priority for this government, economic growth, wealth creation," Starmer said.

European stocks traded higher as investors looked ahead to upcoming Fed and ECB meetings.

Meanwhile, tariff worries persisted, with U.S. President Donald Trump's Treasury secretary pick, Scott Bessent, pushing for new tariffs and warning of a 'calamity' for middle-class Americans, if tax cuts expire at the end of this year.

In the European trading today, the pound rose to nearly a 3-week high of 0.8380 against the euro, from an early low of 0.8394. If the pound extends its uptrend, it is likely to find resistance around 0.81 region.

Against the yen and the Swiss franc, the pound edged up to 194.03 and 1.1286 from early lows of 192.83and 1.1258, respectively. The pound may test resistance around 198.00 against the yen and 1.14 against the franc.

Meanwhile, the pound slid to a 4-day low of 1.2418 against the U.S. dollar, from an early high of 1.2466. The pound is likely to find support around the 1.20 region.

Looking ahead, U.S. durable goods orders for December, U.S. Redbook report, house price index for November, U.S. Consumer Board's consumer confidence for January and U.S. Richmond manufacturing index for January are slated for release.