US Dollar falls slightly against the Pound on positive Brexit news
Clients selling US dollars to buy pounds have been experiencing fantastic levels in recent weeks. Take away a couple of months over the last 3 years, the levels we have been experiencing recently are the best levels to sell US dollars in 3 decades. However the pound to US dollar exchange rate has risen slightly over the last 2 weeks due to positive news from the Brexit negotiations. UK Prime Minister has had positive talks with German Chancellor Angela Merkel and French President Emmanuel Macron in regards to the Irish Backstop. Boris has told the media that the EU no longer see the Irish backstop as a sticking point and believe that a deal can be struck.
UK Parliament to return on September 3rd: What could happen to GBP/USD rates?
MPs within the UK will return to Parliament on the 3rd September and I expect to see fireworks throughout the month. The leader of the opposition has stated a vote of no confidence will materialse however it may not be the first item on the agenda. Boris has publicly criticised Jeremy Corbyn as he believes the labour leader is trying to sabotage the Brexit negotiations. For clients buying or selling US dollars with pounds, its important to keep a close eye and understand how MPs could influence the market in the weeks and months to come.
US China trade war nears 1 year anniversary
Across the Atlantic American companies appear to be losing patience with the President according to Scott McCandless, head of the US trade practice at PwC in Washington DC. Businesses have reported certainty is needed, if they are to invest further in the states and cutting interest rates isn’t the answer as they have access to capital. Furthermore, we are now approaching the 1 year anniversary of trump’s $200 billion tariff against China. The longer this trade war drags on there is the potential that businesses will have to relocate some plants out of the US and the economy may suffer.
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