industry

Pound US dollar exchange rate: GBP/USD down despite Trump threatening ‘national emergency’


Mr Trump tweeted yesterday:“[Democrats] do nothing. If there is no Wall, there is no Security. Human Trafficking, Drugs and Criminals of all dimensions – KEEP OUT!”

US markets are becoming increasing cautious with any signs of a political flare up between the White House and the House of Representatives likely denting the US economy – leaving many USD traders to feel skittish. 

Markets will be awaiting the publication of the US factory orders figures for November today, which are expected to increase by 0.2 per cent, potentially weakening the GBP/USD exchange rate.

Sterling fell against the US dollar today as the latest UK construction PMIs slipped to a worse-than-expected 50.6 – drawing the sector closer to contraction. 

Brendan Sharkey, head of construction and real estate at MHA MacIntre Hudson, commented: There’s no getting away from construction’s dependence on European workers and materials, and it’s actually the larger companies with the biggest problem… As Brexit looms ever closer the labour supply looks likely to shrink, leaving the bigger companies in more difficulty than their smaller regional counterparts.”

In Brexit news, Prime Minister Theresa May has said that she has a “fresh mandate and renewed determination” to return to Brussels and renegotiate a new withdrawal deal that challenges the EU on the Irish backstop issue. 

Sterling investors, however, are remaining cautious as the EU has specifically stated that it is unwilling to accept any changes to the UK-EU withdrawal agreement – particularly regarding the Irish backstop. 

Today will see Mrs May gather Brexit rebels, such as Conservative MP Jacob Rees-Mogg, at Downing Street to address issues around her deal before heading back to Brussels, where she says she will be “battling for Britain and Northern Ireland.”  



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