The pound to US dollar exchange rate continues to rise on the interbank market, from 1.2211 on Friday to a height of 1.2706, a gain of +4.05%. This is the pound to US dollar’s strongest level in nearly four months.
In part, this is because there’s been a breakthrough in the Brexit talks today. EU Chief Negotiator Michel Barnier has recommended that there’s been enough progress to enter what’s called the “tunnel” final phase. Meanwhile, the USA and China have resumed their trade negotiations, to resolve the dispute which has resulted in them imposing tariffs worth hundreds of billions of dollars on each other.
Looking to next week, US economic data that may affect the greenback includes September’s retail sales and industrial production figures.
GBP/USD strengthens as Brexit negotiations enter final “tunnel” stageUSA and China resume trade talks, Trump calls talks “very, very good”
Meanwhile, turning to America, the USA and its biggest economic rival, China, have resumed their trade talks in the last couple of days. Over the last 18 months, the dispute between the world’s two largest economies has spooked investors, slowed trade flows, and brought powerhouse manufacturing sectors close to recession, including Germany’s. So markets are eager to see a resolution.
Following Thursday’s talks in Washington, US President Donald Trump told reporters that “We had a very, very good negotiation with China.” President Trump will meet China’s Vice Premier Liu He to try and consolidate these gains.
US retail sales, industrial production figures may affect US Dollar next week
Next week, as well as the evolving Brexit and US/China trade situations, the greenback could be affected by US economic data. Key releases include September’s retail sales data, due on Wednesday 16th, and US industrial production figures, to be published on Thursday 17th.
If you have an upcoming currency transfer or for more information on GBP/USD exchange rates, please contact me directly using the form below.