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Pound US dollar exchange rate: GBP sinks as Trump is cleared of Russia collusion claim


With Brexit concerns dogging the pound, risk-appetite limited and US political news lending the US dollar support, the US dollar exchange rate slipped by 0.3 per cent at the start of the week.  The US dollar has benefited from the announcement that, after 22 months, President Donald Trump has been cleared of claims of conspiring with Russia during the 2016 election campaign. Republication Senator Lindsay Graham was optimistic. He said: “The cloud hanging over President Trump has been removed by this report… Now it is time to move on, govern the country, and get ready to combat Russia and other foreign actors ahead of [the] 2020 [US elections].”

US dollar traders will now be awaiting today’s publication of the Chicago Fed National Activity Index figures for February. 

Any signs of improvement could provide some further uplift for the ‘greenback’.

Sterling, meanwhile, has weakened today as Prime Minister Theresa May has come under increasing pressure from MPs to resign.

With uncertainty over whether her third ‘meaningful vote’ will go ahead this week the pound has recorded losses against most of its rivals. 

Yesterday an important summit at Mrs May’s country retreat, which included Boris Johnson and other prominent Brexiteers, ended abruptly without any progress. 

Tory MP Nigel Evans said: “Clearly a number of people do not want the Prime Minister anywhere near the next phase of negotiations, which is the future trading negotiation between ourselves and the EU.”

The pound US dollar exchange rate will be dictated by Brexit developments this week.

If the odds of a no-deal Brexit rise the pound could plummet.  



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