The pound to US dollar has no doubt had a bad run of form lately with ‘no deal’ Brexit concerns most likely the main driver for sterling weakness over the past few weeks.
Boris Johnson’s hard-line Brexit stance weakening GBP
Boris Johnson and his hard-line approach on leaving the EU on October 31st no matter what is potentially causing investors and speculators alike to steer clear of the pound until there is a clearer picture of what may actually happen.
This could be fairly understandable as you wouldn’t look to invest in a business if you had no idea what the business had actually planned for the months and years ahead. It does seem like Boris and the EU are playing an incredibly high stakes game of chicken and if neither side budges then we may find that no deal could actually happen, which could be the reason why the pound is losing ground almost daily.
Should there be any compromise or progress with talks then you may see a turnaround and the pound may move higher against the euro, but with MP’s currently on summer recess it is unlikely that we will see any great progression in the coming weeks.
Trade wars between Donald Trump and China still add to a little political and economic uncertainty for the US dollar, but this situation does not appear to be hitting the dollar too hard currently.
Economic data this week: How could Pound to US Dollar exchange rates be affected?
Economic data this week that may impact the pound to US dollar exchange rate could be GDP (Growth) figures for the UK on Friday, where expectations are for a slight drop in performance for the UK and this may cause further movement for the pound at the end of the trading week.
ISM manufacturing data is out for the US this afternoon and Producer Price index data out of Friday, both could impact dollar rates. The main drivers for the GBP/USD rate movement this week may come from sentiment towards Brexit and the Trade Wars with China.
If you have US dollars to exchange, or any currency pegged to the dollar then it is key that you deal with a proactive and experienced brokerage to cater for your needs.
Feel free to get in touch with us here at Pound Sterling Forecast by filling in the form below and we will be happy to help you every step of the way.