Will US-China trade negotiations over the next few days influence the GBP/USD rate?

The US Dollar, despite having an incredible 2018 has actually been on a losing streak recently, and it’s lost value against the Pound for 4-days in a row now.

The US President Donald Trump has once again re-ignited his war of words with the Federal Reserve Bank and their plans to continue hiking interest rates, and he commented that he’s ‘not thrilled’ with the Fed’s continuing bullish plans. It’s unusual to see the Fed’s actions scrutinised by a US President, and Trump’s comments resulted in sell-off of the Greenback’s value. The current losing streak is the Dollar’s worst since back in March when the rate of cable (GBP/USD) was actually at its highest level of the year (1.4450). It’s since fallen by over 15-cents which goes to show how strong the currency has been.

There could be movement for the Pound to USD exchange rates this week despite there being no economic data out of the UK during that period. At the time of writing, the UK’s Brexit Secretary Dominic Raab is in discussions with the chief EU negotiator, Michael Barnier. Just yesterday Barnier highlighted that the UK and the EU will now work continuously to try and reach a deal. Hopes of a deal being in place by October have faded with November now the more likely scenario.

At the same time the US and China have just begun trade negotiations for the first time in 2-months. This was a major talking point a few months back and concerns global markets, as a trade war would most likely cause a slowdown in the global economy. All eyes will be on these talks and those with a USD currency exchange to make should be aware of this.

Data is light for the rest of the week so I expect these trade talks to be the major influences of currency movements; if you wish to be updated in the event of a major market movement, do feel free to register your interest with me using [email protected].

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