The Pound to Dollar exchange rate rallied sharply on Thursday but GBP/EUR fell heavily as the Euro soared amid a continued unravelling of US equity markets, which might reflect a re-evaluation among investors of the stratospheric, and perhaps now indefensible, valuations that have long prevailed across the pond.

Pound Sterling recovered prior losses from the US Dollar and Euro overnight on Thursday after the White House announced a 90-day delay to the implementation of its new global import tariff, which could see GBP/EUR back around 1.1720 in the session ahead as GBP/USD recovers the 1.29 handle.

The British Pound fell against an unraveling US dollar and saw larger losses in many crosses on Wednesday after the Sterling bond market unraveled across the curve, driving long-term financing costs to their highest since 1998, and as Storm Rachel continued to gather over the UK economy.

Pound Sterling rose smartly against a receding US Dollar on Wednesday as the Euro, Japanese Yen and Swiss Franc each rose further against the Renminbi and greenback following the People’s Bank of China’s latest central parity fixings.