Pound hits 4 week high against the US Dollar

US dollar Forecast: US GDP data and the impact on pound vs dollar rates

The Pound has had a very strong end to the week vs the US Dollar after the dismal local election results for the Tories and the Labour party.

The results have encouraged a number of senior Tory members to put pressure on the Tory party to progress the cross party talks in order to deliver a Brexit and Theresa May has been quoted as saying the public wanted to ‘see the issue of Brexit resolved.’

The rumours have increased over the weekend that the talks are moving forward and this could see a Brexit deal being agreed sooner than some may expect.

The suggestion is that Theresa May is warming towards a customs union and this has given the Pound a real boost against the US Dollar trading at the higher end of the 1.31 level towards the end of Friday’s trading session.

The Prime Minister appears to want the talks to be concluded during the course of next week and if they end positively this could bring us closer to the House of Commons potentially delivering Brexit.

However, I am still doubtful that even if things progress next week with the cross party talks I still think there is a huge way to go before the House of Commons get any closer to voting for Brexit to take place.

In the meantime however the Pound is now trading at its best level to buy US Dollars in 4 weeks which is good news for anyone looking to convert Pounds into US Dollars at the moment.

Also, during the week the Bank of England pushed up the UK’s growth forecasts and suggested that a no-deal Brexit was no longer too much of a concern as it appears as though the chances of this now happening are minimal.

Towards the end of next week the UK will release GDP data for the first quarter of 2019 on Friday morning with the US releasing inflation data on Friday afternoon. Both sets of data will have the potential to move GBPUSD exchange rates as both data sets will be important in both central banks deciding what to do with future monetary policy.

If you would like to save money on exchange rates compared to using your own bank when buying or selling US Dollars then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian