Pound to US dollar exchange rates has increased slighlty as the US and China look to impose fresh tariffs on each others goods.
New trade tariffs imposed
Breaking news broke overnight as the White House confirmed that they would be taxing another $200billion of goods that come from China. Reports are suggesting that there will be a 25% tariff on 5,700 different types of goods leaving Chinese ports and the new tariffs came into effect at 5am this morning. Furthermore, the Chinese have responded by stating they will retaliate, however we are unclear at present of their approach but know doubt they will impose new tariffs of there own. With the trade war escalating the global economy will be impacted and this is supported by the IMF.
Brexit cross party talks breaking down
With the problems in the US escalating clients buying US dollars should keep a close eye on how the trade wars unfold, however the UK has problems of its own. UK Prime Minister Theresa May is under sever pressure to resign in a bid to break the Brexit deadlock. Yesterday, leader of the opposition Jeremy Corbyn confirmed that the PM is still not prepared to cut any of her red lines, which is no surprise. The negotiations will continue but personally I expect it’s a matter of time until the PM announces that she will give MPs another vote in the House of Commons. If this materialises it shows that the cross party talks have failed and the UK will enter a period of further uncertainty.
If you are buying or selling US dollars short, medium or long term the Trade war alongside Brexit has the potential to cause major volatility. If you would like to be kept up to date as events unfold feel free to fill in the form below.
UK Q1 GDP numbers released
In other news UK GDP numbers were released this morning and the quarterly numbers rose to 0.5% from 0.2% which is a good sign for the UK economy. In addition industrial manufacturing and production numbers were also released and exceeded expectation. Good news for now but perhaps companies are stockpiling goods due to the Brexit uncertainties. If you are converting GBP/USD and want regular information and fantastic exchange rates feel free to get in touch by filling out the form below and I personally will give you a call.