Pound US dollar exchange rate: GBP/USD climbs as Trump threatens national emergency

The White House press secretary, Sarah Huckabee Sanders, said in a statement: “President Trump will sign the government funding bill, and as he has stated before, he will also take other executive action — including a national emergency — to ensure we stop the national security and humanitarian crisis at the border.”

Despite the rhetoric, US dollar traders are generally relieved that it is now unlikely the US will face another government shutdown.

Today will see the publication of the US Michigan Consumer Sentiment Index figures for February, which are expected to increase and possibly provide some uplift for the US dollar. 

Sterling clawed back its losses on the US dollar today following the publication of the UK retail sales figures for January, which shot up beyond expectation to 1 percent. 

These were accompanied by the yearly retail sales figures for January, which also increased above expectation to 4.2 percent. 

Rhian Murphy, a statistician at the ONS, commented: “Clothing stores saw strong sales, luring consumers with price reductions, with food sales also growing after a slight dip after Christmas.”

In Brexit news, Prime Minister Theresa May suffered another blow from the Commons last night as MPs voted by a majority of 45 against a motion which endorsed Mrs May’s Brexit strategy. 

Labour opposition leader, Jeremy Corbyn, commented on the defeat, saying: “[Mrs May should] admit her Brexit strategy has failed.”

A government spokesman commented:  “While we didn’t secure the support of the Commons this evening, the prime minister continues to believe … that far from objecting to securing changes to the backstop that will allow us to leave with a deal, there was a concern from some Conservative colleagues about taking no deal off the table at this stage.”

The GBP/USD exchange rate will remain sensitive to Brexit developments today, and with Theresa May now under increasing pressure from Parliament after last night’s defeat, the GBP/USD exchange rate is likely to remain volatile. 

Source: Read Full Article