The GBP USD exchange rate rallied by around half a cent this morning as market confidence in the US Dollar continues to be undermined by the political instability of Donald Trump’s administration.
GBP USD Rises as Trump’s Sweden Comments do little to Reassure Investors
The US Dollar started the week’s session on the back foot as Trump’s claim of a non-existent security incident in Sweden added to a long list of political blunders for the new administration.
In talking about terrorism in Europe on Friday Trump said ‘look at what’s happening last night in Sweden’, however, with no major incidents being reported in Sweden that day his comments were widely ridiculed by the media.
Markets are worried that Trump’s administration continues to focus its efforts on immigration and is neglecting economic policies.
Pound Recovers with House of Lords Set to Debate Brexit Bill
Meanwhile, the Pound has started to recover from last week’s slump as the House of Lords is set to begin debating the government’s Brexit bill, which would grant it the authority to trigger Article 50 and begin the formal Brexit process.
Investors are optimistic that the Lords may attempt to make a number of amendments to the bill as they seek to protect the rights of EU citizens and give parliament the final say on the terms of leaving the EU.
With Conservatives lacking a majority in the House of Lords there is a distinct possibility that the Labour and Lib Dem peers could successful block the bill until the amendments are upheld, however it would be a major departure from the House’s usual stance of allowing legislation through after a vote in the Commons.
GBP USD Exchange Rate Forecast: CBI Trends Orders Ahead
The GBP USD exchange rate rally may come to an abrupt end later this morning as figures from CBI’s Industrial Trends Orders are expected to have dropped from 5 to 3 in February.
Meanwhile the US Dollar may advance on Tuesday with the release of Markit’s US Manufacturing and Services PMIs, which are expected to rise from 55 to 55.2 and 55.6 to 55.7 respectively.
Current Interbank Exchange Rates
At the time of writing the GBP USD exchange rate was trending around 1.24 and the USD GBP exchange rate was trending around 0.80.
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