Sterling continued its two day charge moving to just below 1.31 against the US Dollar for the first time since September last year. Sterling has been under major pressure of late however there finally appears to be a little relief as no new major headlines are released – although the second round of Brexit negotiations do start next week.
From the perspective of the US Dollar there appears to be cracks appearing from a political and economic point of view. There are arguments suggesting that Donald Trump’s position is becoming untenable, especially after the latest debacle of Trump Jr. who took a meeting with a Russian lawyer who had information on Hilary Clinton. Trump this afternoon justified that by suggesting any politician in his position would have taken that meeting, evidently that was met with disdain.
Will the GBP/USD rate continue to rise?
Now that the major milestone of 1.30 has been passed there looks like there could be further gains for Sterling against the Dollar. Even though Sterling is not without it concerns as MPs begin to devour the newly released Repeal Bill over the weekend. Over the next two months, if UK data shows signs there isn’t a collapse on the cards then 1.33 may not be far away.
Anyone who is looking to sell US Dollars may want to consider acting sooner rather than later as the rate in the 1.20’s may well be gone.
Janet Yellen testified yesterday in front of Congress and potentially dampened spirits about the near future of the US Dollar. Now that there is uncertainty with the US Dollar from an economic and political perspective things may not run so smoothly over the course of the second half of the year.