How will GDP data affect the GBP/USD exchange rate?
This morning UK Gross Domestic Product (GDP) figures will be released and could help Sterling gain ground against the US Dollar. The rate has touched the 1.31 level this month for the first time in 3 quarters of a year and we could see further positive movement for the GBP if the data comes in positive.
UK exports have been good over the last few months and this may now be filtering through, however UK data has appeared rocky on a few occasions of late so it might not all be such plain sailing.
US Vote for Russian Sanctions
The US House of Representatives have voted overwhelmingly to impose new sanctions on Russia after the alleged interference in the 2016 US election.
This vote is another backwards step for President Trump who has been trying to build bridges with Russian President Vladimir Putin. After meeting at the G20 summit earlier this month on more than one occasion there has been clear intentions for the two nations to come closer. However the vote in the US Government means Trump has little support to further enhance the friendship.
Donald Trump will be left with the last vote as he will have to sign the Bill but as the Representatives voted 419-3 he would be challenging even some of his closest allies.
Trump has started to lose support with the latest new Health Bill also halted by a vote, this vote suggests trouble might be brewing.
Due to the slim victory for Trump in the US election he will on some occasions need cross-party support. If the President keeps coming up against opposition whilst trying to implement new plans, then the US Dollar could suffer from the uncertainty, especially if President Trump’s position starts to appear untenable. If there was to be a vote of no confidence then there could be a major upward movement for the GBP/USD exchange rate.