Over the last few days it appears as though the talks between the US and China are improving and this could mean an agreement is reached in the near future.
Part of the new agreement means that China will have to buy US based agricultural goods as well as reducing costs for American companies based in China.
The US Dollar marginally strengthened against the Pound towards the end of last week and if the talks conclude this could provide the Dollar with further strength against the Pound.
Dollar recent weakness against the Pound
Since the start of 2019 the US Dollar has been gradually weakening against the Pound as it appears as though the US Federal Reserve are not going to be taking such an aggressive stance concerning interest rates.
The central bank have suggested that they will not just look at the data with the economy but take a more detailed view including listening to business leaders and their opinions.
US Non-Farm Payroll data due this week
Later this week we have the latest monthly release of US Non-Farm Payroll data which measures the amounts of new jobs created outside of the agricultural industry. The expectation is for 185,000 new jobs so depending on the release this could see some movement on GBP/USD rates.
Brexit latest news the key for Pound strength
Turning the focus back to the UK and the Pound is clearly being influenced by the latest Brexit developments. Things appear to be helping Sterling exchange rates against a number of different currencies at the moment and we are just over a week before the next ‘meaningful vote’ which is due to take place on 12th March.
Theresa May has been busy canvassing for support and as we are now less than 4 weeks away from when the UK is due to leave the European Union she is clearly running short of time.
I think we’ll see an extension to the date of 29th March but there is still an element of risk of a no deal Brexit, so make sure you’re well prepared for some big movements on GBP/USD rates ahead especially towards the end of this month.
If you would like a free quote when buying or selling US Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly using the form below. I look forward to hearing from you.