Pound vs US Dollar rate: USD the Safe Haven currency of choice

Pound vs US Dollar rate USD the Safe Haven currency of choice

Pound to US Dollar forecast

Pound to US dollar rates continue to struggle due to several contributing factors. Key factors are affecting rates are the political and economic uncertainties. The UK currently has no PM and we are in complete Brexit limbo.

Boris is hotly tipped to become new PM and he has stated that he will be willing to bring a no deal scenario back to the table in order to negotiate an improved deal with Brussels. The problem this creates is that the higher the probability of a no deal the weaker sterling will become.

Jerome Powell says no further rate hikes from the Fed this Year: How will this affect Pound to US Dollar rates?

The Trump has been waging a trade war with China. There has been a tentative truce put in place and there are rumours circulating a deal could be close. I am not convinced however, this has been previous occasions where it appeared a deal was close to fruition only for Trump to bring tariffs back to the table.

Due to it’s status as a safe haven currency the US dollar actually gains strength in times of global economic uncertainty as investors tend to shy away from riskier commodity based currencies.

Fed Chair, Jerome Powell did speak recently and did state he would be curbing any further rate hikes this year which could be interpreted that a rate cut could be on the cards which may create an opportunity for sterling sellers.

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