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

Pound to US Dollar exchange rates Federal Reserve cuts interest rates, how has this affected the GBPUSD exchange rate?

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.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavour to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 18yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving.