The Pound against the US dollar has been trading above 1.30 for a few weeks now, and although the UK has experienced a lot of uncertainty recently the Pound has managed to sustain a level of support.
The trade wars between the US and China have continued to weigh heavily on the global economy as the two superpowers are still battling with each other to try and come to a resolution. If this doesn’t show signs of ending soon it could cause further problems for the global economy.
Early this morning the House of Commons voted in favour of blocking a no deal Brexit, and this vote will now go to the House of Lords to become law, prior to going to the European Union for approval on an extension.
The result is now likely to put pressure on Theresa May to ask the European Union for a longer extension if this bill becomes law.
Cross party talks will continue over the next few days and if things improve, we could see the pound making gains vs the US dollar.
Later on today the US will release their latest set of Initial Jobless Claims and tomorrow we end the week with arguably the most important data release of the month with US Non Farm Payroll data due out tomorrow afternoon.
Unemployment is predicted to come out at 3.8% with expectations for 180,000 being the Non-Farm Payroll figure for March.
This economic data provides a real insight into the health of the US economy and will provide a steer as to how the Federal Reserve (Fed) will look at monetary policy at their next meeting.
As we started the year the predictions were for two interest rate hikes during 2019, but the Fed appear to have softened their stance recently.
Therefore, tomorrow’s jobs data will be crucial in terms of how it could affect GBPUSD interbank exchange rates in the near future.
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