Pound to US Dollar forecast: Will Brexit happen this month and the impact on GBP/USD exchange rates?

Pound to US Dollar forecast Will Brexit happen this month and the impact on GBPUSD exchange rates?

Will Brexit end this month?

The pound to US dollar exchange has once again been failing to make any headway as the Brexit negotiations appear to be grinding to a halt. Boris Johnson has claimed that the EU has made any deal ‘impossible’ and we are now just 3 weeks away from when the UK are due to be leaving the European Union.

According to reports from the continent Johnson has until Friday to come up with an alternative arrangement and time is clearly running out. With the EU summit due to take place on 17th-18th October this is likely to end up with Boris Johnson being forced to write a letter to the EU to ask for an extension. The ‘Benn Act’ which was introduced earlier this year means that the Prime Minister will have to write a letter if no deal has been moved forward.

Pound to US Dollar forecast: US interest rates to be cut this month?

Turning the focus towards the US we could be in for a busy month ahead. Fed Chair Jerome Powell has hinted that another interest rate cut may be coming on 30th October and the minutes from Wednesday night suggested the same.

Global growth has been slowing and the US-China Trade Wars appear to show little signs if improving. Combined with the risks to the global economy of Brexit and there is certainly cause for concern. Therefore, could we be seeing an interest rate cut coming at the end of this month. If this was to happen, expect volatility for GBP/USD exchange rates.

US inflation data is due to be released later this afternoon. If we see a fall in the level of inflation this could provide further evidence to support an interest rate cut in the world’s leading economy.

If you have an upcoming US Dollar transfer to make, you may wish to prepare for what could be a busy few weeks ahead for GBP/USD exchange rates. You may wish to contact one of our currency specialists using the form below.