In today’s Pound US Dollar forecast I discuss whether the Pound is likely to fall even further against the US Dollar. The US Dollar has remained very strong against the Pound in recent weeks staying below 1.30 as the problems surrounding Brexit appear to be mounting.
Today will be the third day of debating prior to the proposed vote on December 11th which will decide whether or not Parliament will approve the current Brexit deal on offer by Theresa May.
Yesterday, the Government was forced to publish the legal advice it had been given about Brexit which is the first time in history that Parliament has been found in contempt.
This did not go down well with a number of MPs, and at the moment it appears as though Theresa May will be well short of the votes needed to approve this particular deal. If Theresa May loses the vote then it is likely that she will be going to Brussels on 13th December for the next EU summit to try and appeal for further concessions or amendments to the current plan.
However, there is also another chance that Theresa May could even be forced to resign if the vote shows a huge amount less than she needs.
US economic data to help the US Dollar vs the Pound
Turning the focus to what is happening in the US at the moment we could see some further US Dollar strength over the next couple of days as we wait for the release of Initial Jobless Claims data later on today.
The US economy has been showing some very positive signs recently and this provided a lot of support in favour of further interest rate hikes in the US.
Tomorrow afternoon, we could see further Dollar strength against the Pound when the US releases Average Earnings data as well as the Unemployment Rate which is expected to hit 3.7%. This is close to the lowest levels in US history.
The US Federal Reserve are due to next meet on 19th December and the expectation is for a final interest rate hike in 2018. If the jobs data for today and tomorrow comes out strong then I think we could see Pound vs US Dollar rates falling towards the end of the year.
Therefore, if you’re buying US Dollars it may be worth getting this organised in the near future.
If you would like further information about about my Pound US Dollar forecast please feel free to contact me directly using the form below and I will reply to you personally.