Pound to USD forecast: Donald Trump warns the Fed

In this Pound to US Dollar forecast we look at the events that are impacting the GBP/USD exchange rate.

The USD has started the week under pressure as President Donald Trump told Reuters this weekend that the Fed should be helping him more and therefore not raising interest rates further. In recent months the President has made it clear that he is concerned about the strength of the US Dollar and has even stated he believes other leading nations are trying to devalue their currency to make it more competitive (cheaper to buy).

This week the Chairman of the Federal Reserve Jerome Powell will give a speech on Friday at the Jackson Hole Symposium. This is an annual event that academics, monetary policy experts and central bankers attend to discuss the world economy. Mr Powell speech on Friday will be interesting and if he goes against the President once more and hints that a September hike is likely, I expect the US dollar will recover the losses experienced earlier in the week.

Brexit negotiations resume between the EU and UK

On the other side of the Atlantic, the Brexit negotiations have resumed in Brussels and the UK’s Brexit Secretary Raab is set to meet the EU’s Chief Negotiator Barnier. With the October deadline fast approaching, progression is needed. Furthermore, the City of London has continuously warned the UK Prime Minister that the uncertainty is causing a problem for business, therefore for the pound to strengthen we need both negotiators to state progression is being made, however this is unlikely to happen in my opinion. In fact the BBC have stated that the UK plan to publish the first paper of how UK businesses should prepare for a no deal Brexit.

It’s likely that the pound will remain under pressure against the USD until the EU summit on October 18th and 19th. Depending on the outcome, I expect major fluctuations for the currency pair. Furthermore, with major fluctuations expected in the upcoming months making a plan now could save you a considerable amount of money in the long run.

If you would like to know more about what could affect GBP/USD exchange rates or would like assistance with a currency exchange, please feel free to email me directly at [email protected].

The post Pound to USD forecast: Donald Trump warns the Fed appeared first on Pound Sterling Forecast.