Last week’s high: $1.2346
Last week’s low: $1.1967
Softening Brexit Fears see Pound to US Dollar Rebound from Decade Worst
No-deal Brexit fears briefly intensified in the first half of last week with the Pound to US Dollar exchange rate touching on its worst level in a decade.
Efforts to prevent a no-deal Brexit along with three parliamentary defeats for Boris Johnson helped the Pound sustain a solid recovery between Tuesday and Thursday, though the rally lost momentum on Friday.
Positive developments in the US-China trade war have seen investors more willing to buy riskier currencies, and the latest key US data has been mixed. Both factors weighed on the US Dollar, clearing a path for GBP/USD exchange rates to advance throughout the week.
USD Outlook: Another Week of Brexit Chaos to Drive Currency Markets?
The potential remains for a significant shift in GBP/USD movement next week depending on developments in Brexit and UK politics.
If the British Parliament fails to prevent a no-deal Brexit, or an early snap election is confirmed, the Pound is likely to react negatively. Pound investors are also wary of speculation the Prime Minister may yet find a way to force his preferred no-deal outcome.
Major US data due this week includes inflation and retail sales, either of which could cause Federal Reserve interest rate cut bets to rise if they fall short of predictions. Increasing hopes for a resolution to the US-China trade situation could lead to divergent US Dollar weakness as investors turn to risk-sensitive currencies.
UK Parliament Vote Preventing No-Deal Brexit
09:30 Growth Rate
09:30 UK Job Market Report
15:00 US Wholesale Inventories
13:30 US Inflation Rate
13:30 US Retail Sales
15:00 US Michigan Consumer Sentiment
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