The Pound has once again got close to its lowest level against the US Dollar during 2018, as the Brexit deal on offer has been received very badly by the foreign exchange markets.
Brexit Secretary Dominic Raab has announced his resignation after the Cabinet meeting as well as Pensions Secretary Esther McVey, who both could not continue in their current roles after the decision on the draft deal. Indeed, Raab is the second Brexit Secretary to resign this year.
Pound US Dollar Forecast: Pound Sterling weakness and US Dollar strength
The Pound has faced losses across the board against a number of different currencies and as the Dollar is typically used as a safe haven currency, we have seen the Greenback impress by increasing by 2% against the Pound during Thursday’s trading session.
In the meantime whilst the UK political landscape gets worse the economic data published in the US has shown an improvement in US Retail Sales by 0.8%, which was better than the expected level of 0.5% and this gave the world’s leading currency an even bigger boost.
After trading above 1.30 only a few days ago the Pound appears to be in a precarious situation. I cannot see any reasons why we could see the Pound claw back any of these losses in the short term as all the other alternatives on offer do not appear to be that appealing, at least for the time being.
Theresa May backs her Brexit deal
Prime Minister Theresa May held a press conference on Thursday afternoon and reiterated her belief in the current Brexit deal and wants people to back it.
Today Theresa May is continuing to try and curry favour with the country by continuing to reinforce her message that this deal is the best that she has managed to negotiate and in the UK’s best interests. She is facing more resignations and opposition from a large number of MPs, but she will be trying to convince MPs to support the current plans that this is the best option.
We have seen a small recovery for the Pound against the US Dollar already this morning after the large drop yesterday of 2% which is the difference of £1,530 on a currency transfer of USD$200,000. However, I expect the problems for the Pound to continue against the US Dollar.
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