Pound US Dollar Exchange Rate Advances as Trump Advisor Suggests Rapid UK-US Trade Deal

Modified: Thursday, 10 November 2016 16:05 BST - Written by Minesh Chaudhari

STORY LINK Pound US Dollar Exchange Rate Advances as Trump Advisor Suggests Rapid UK-US Trade Deal

Pound Sterling to US Dollar Exchange Rate Rally Triggered by ‘Front of the Queue’ Comments

The Pound US Dollar exchange rate has risen to 1.24 today, in the wake of a day of wild pairing movement due to Donald Trump being elected US President.

With UK domestic data lacking at present, the Pound has only really been aided by optimism about a future UK-US trade deal that has been implied by Trump’s Trade Advisor Dan DiMicco.

Speaking on what Trump would do if elected, DiMicco stated that the UK would go the ‘front of the queue’ when it came to foreign trade agreements, which bolstered GBP currency by a great deal.

GBP/USD Exchange Rate could Crumble on Next Week’s UK Jobs Data

With only a positively-predicted annual September construction output figure left this week, it is worth looking ahead to the coming week for further potential UK influences on the Pound to US Dollar exchange rate.

Of particular interest will be Tuesday, which will bring October’s monthly and annual inflation rate figures. Respectively, a reprint at 0.2% and rise from 1% to 1.1% have been forecast.

On Wednesday, UK jobs data covering October’s claimant count change and September’s unemployment rate and earnings figures will be announced. Claims are predicted to drop, but unfortunately for Sterling, unemployment is expected to rise and earnings with bonuses also have a decline predicted.

US Dollar-Pound Exchange Rate Down, Overall Gains Recorded on ‘Trump Bump’

Despite forecasts of a long-term market crash for the US Dollar in the event of a Trump Election victory, the USD has actually rallied today against all but the stronger Pound.

The latest support offered to the US Dollar has come mainly from optimistic investors, who have supported the US Dollar on the back of President-Elect Trump’s earlier spending comments.

Although Trump’s tone in victory was markedly different than when campaigning, hopeful investors have nonetheless taken pledges to put billions into infrastructure at face value.

US Dollar to Pound Exchange Rate Remains Vulnerable to Trump-Induced Shocks

While US domestic data is still due out today and tomorrow, its overall impact is expected to be limited by the continued effects of a still astonishing US Election outcome.

This afternoon will see the October monthly budget statement announced, which is forecast to fall considerably from 33bn to -28bn.

Closing off US data releases on Friday will be a speech from Fed official Stanley Fischer, as well as the University of Michigan consumer sentiment figure for November. In the latter case, a rise from 87.2 to 90.3 has been forecast.

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TAGS: Pound Dollar Forecasts