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GBP/USD Slumps to New 13-Month Low as Brexit Jitters Bite

Last week’s high: $1.3027

Last week’s low: $1.2750

Pound Bludgeoned by ‘No-deal’ Brexit Fears

The Pound US Dollar exchange rate slumped over two cents to fall below $1.28 last week, striking its lowest levels in more than a year.

This came following a heavy sell-off of Sterling in the first half of the week as concerns grew that the UK may be hurtling towards a ‘no-deal’ Brexit.

The downturn in the GBP/USD exchange rate was further accentuated by a sizable upswing in the US Dollar last week, driven by yet another escalation in trade tensions between the US and China.

USD Outlook: Will Rise in UK Inflation Prompt Sterling Rally?

Looking ahead, the Pound may look to recoup some of its losses this week, should the UK’s latest inflation or wage growth figures show improvement.

However any gains in the GBP exchange rate are also likely to be reliant upon Brexit, with further negative headlines likely to undermine any attempts by Sterling to advance.

Meanwhile demand for the US Dollar may remain high this week if markets continue to seek shelter from ongoing global uncertainties, although some of these gains could unravel if US retail sales growth is shown to have slowed last month as expected.

Key Events

14th August

09:30 UK Unemployment Rate (Jun)

09:30 UK Wage Growth (Jun)

15th August

09:30 UK Inflation Rate (Jul)

13:30 US Retail Sales (Jul)

14:15 US Industrial Production (Jul)

16th August

09:30 UK Retail Sales (Jul)

17th August

15:00 US Consumer Sentiment (Aug)

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To keep up to date with the US Dollar, visit the USD blog in our Currency News section.

Arron Morris
Currency Trader
T: 01442 892 065

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