US Dollar continues to remain strong against the Pound and Euro

US Dollar continues to remain strong against the Pound and Euro

Dollar goes from strength to strength

The pound to US dollar exchange rate has been performing poorly of late against as the US dollar strengthens against a number of different currencies including vs the euro and the pound. The price of gold has recently high a 6 year high and as gold is priced in US dollars then this can often cause the US dollar to strengthen. Global investors still appear to be concerned with a global slowdown and this is causing them to see the safer haven of the US dollar.

The US China trade wars are still ongoing and although Trump has postponed an agreement to impose the next tariff until 15th December there is still a huge amount of uncertainty surrounding the situation.

Later tonight the Federal Reserve will announce the minutes from their latest minutes. US President Donald Trump has been putting a lot of pressure on the Fed in recent times to cut interest rate. However, they are independent and have so far distanced themselves from Trump’s pressure. What will be interesting to discover about tonight’s minutes is what appetite there is to change monetary policy. If the Fed signal that they may be gearing up to cut interest rates, then this could see the dollar weaken overnight. Therefore, if you’ve got an upcoming transfer involving US dollars then pay close attention to tonight’s news.

There is little economic data towards the end of the week so it is likely that GBP/USD exchange rates will be influenced by the latest Brexit issues.

Boris in Europe

British Prime Minister Boris Johnson is currently visiting Europe and will be seeing both Merkel & Macron. He has been very outspoken recently about his opposition to the Irish backstop, but Donald Tusk has also said that no other option has been offered as of yet. Therefore, we are still at a stalemate and this appears to be having a negative impact on the value of the Pound vs the US Dollar.

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