US China tariffs cause US Dollar to strengthen against the Pound

GBP to USD Forecast: Record Job Losses for the US as Coronavirus Takes Hold

Tariffs on Chinese goods and the impact on the US Dollar

At the end of last week the US once again imposed further tariffs on Chinese goods entering the US. US President Donald Trump increased the tariffs from 10% to 25% and it appears as though the US-China Trade Wars show little sign of ending soon.

Trump has also claimed that he is in ‘absolutely no rush’ to finish the talks between the world’s two leading economies. This could put pressure on China to retaliate with their own tariffs on US goods so the problems could quickly escalate.

The recent tariffs were originally due to come in at the start of the year but were delayed in order to try and come to a resolution. However, with last week’s increase could this be a sign of further things to come?

One of the real problems for the US is that ultimately it could be US consumers that pay the price for the tariffs and this could be damaging for the US economy.

Behind the scenes some reports claim that the Chinese are working hard to try and resolve the situation but with the US taking their recent stance I think the issue is far from over.

US Economic Data to influence the US Federal Reserve

Turning the focus back towards what is happening with the US economy, tomorrow brings with it the latest US Retail Sales data. The figures are expected to see a fall compared to the previous month which is a sign that the US economy may be in the midst of a slow down.

Last week US inflation also fell so this could put pressure on the Federal Reserve to consider what to do with monetary policy.

What is interesting to see is that the US Dollar is actually strengthening against a number of different currencies including vs the Pound creating some excellent opportunities to sell Dollars to buy Pounds.

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 you contact me directly using the form below. I look forward to hearing from you.