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Pound Struggles against US Dollar as GBP Traders are Denied Brexit Deal
Published: 4 Dec at 5 PM Tags: Pound Sterling, Dollar Exchange Rate, Currency Exchange, Forex, UK, Exchange Rates, Pound Dollar Exchange Rate,
Intensification of Brexit Talks Triggers GBP/USD Rate Fluctuations
The Pound has been volatile against the US Dollar today, seeing gains for most of the day before dropping back and trading tightly in the pairing.
The GBP/USD exchange rate initially rose because of Brexit optimism; at one point it was speculated that previously stalled talks could be wrapped up within hours.
Ireland’s border was a primary point of focus, with news arriving that the UK government had conceded on no ‘regulatory divergence’ between Ireland and Northern Ireland.
While traders were optimistic about the possibility of no trade barriers between the two entities, Democratic Unionist Party (DUP) officials soon voiced scepticism about such close links.
The Pound really fell over the afternoon, when UK Prime Minister Theresa May confirmed that there would be no immediate Brexit deal progress, in spite of the day’s events.
If the dust has settled from Monday’s news, the Pound could fall further against the US Dollar on Tuesday.
The morning’s main news will be the November services PMI, which is tipped to show a slight slowdown in the key UK Sector.
US Dollar Advances despite Scepticism about Tax Reforms
Over in the US, the US Dollar has seen a minor advance against the Pound, along with greater gains in other pairings.
USD movement has lately been influenced by news from the US Senate, where Republican senators have passed a tax reform bill by a slim majority.
This is not the end of the story by any means, but for now there is background optimism about the Trump administration passing its first significant piece of legislation.
On the downside, there has been an abundance of sources scrutinising the planned tax reforms.
Some of the ‘lighter’ critics believe that the US’s wealthier citizens will more greatly benefit from the tax cuts than the worse off.
On the other end of the scale, former US Treasury Secretary Larry Summers has claimed that ends of thousands of citizens could die from an inability to afford healthcare if the reforms go through.
The tax bill remains an extremely controversial topic in US economic and political circles, but any further signs that it could become legislative reality represent a chance for further US Dollar to Pound gains.
The Pound has been volatile against the US Dollar today, seeing gains for most of the day before dropping back and trading tightly in the pairing.
The GBP/USD exchange rate initially rose because of Brexit optimism; at one point it was speculated that previously stalled talks could be wrapped up within hours.
Ireland’s border was a primary point of focus, with news arriving that the UK government had conceded on no ‘regulatory divergence’ between Ireland and Northern Ireland.
While traders were optimistic about the possibility of no trade barriers between the two entities, Democratic Unionist Party (DUP) officials soon voiced scepticism about such close links.
The Pound really fell over the afternoon, when UK Prime Minister Theresa May confirmed that there would be no immediate Brexit deal progress, in spite of the day’s events.
If the dust has settled from Monday’s news, the Pound could fall further against the US Dollar on Tuesday.
The morning’s main news will be the November services PMI, which is tipped to show a slight slowdown in the key UK Sector.
US Dollar Advances despite Scepticism about Tax Reforms
Over in the US, the US Dollar has seen a minor advance against the Pound, along with greater gains in other pairings.
USD movement has lately been influenced by news from the US Senate, where Republican senators have passed a tax reform bill by a slim majority.
This is not the end of the story by any means, but for now there is background optimism about the Trump administration passing its first significant piece of legislation.
On the downside, there has been an abundance of sources scrutinising the planned tax reforms.
Some of the ‘lighter’ critics believe that the US’s wealthier citizens will more greatly benefit from the tax cuts than the worse off.
On the other end of the scale, former US Treasury Secretary Larry Summers has claimed that ends of thousands of citizens could die from an inability to afford healthcare if the reforms go through.
The tax bill remains an extremely controversial topic in US economic and political circles, but any further signs that it could become legislative reality represent a chance for further US Dollar to Pound gains.
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Source: moneytransfer.co.uk