Pound US dollar exchange rate: GBP holds up after Brexit agreement
Pound US dollar exchange rate: The pairing is currently trading at $1.284 (Image: GETTY)
The pound is holding up against the US dollar this morning after the securing of EU approval for the UK’s withdrawal agreement bolstered investor appetite for Sterling.
Nevertheless, despite the generally positive market sentiment surrounding the withdrawal agreement, the pound did not quite bounce back as expected this morning with some analysts remaining puzzled as to the lack of movement.
Mouhammed Choukeir, Chief Investment Officer at the investment bank Kleinwort Hambros, noted this.
He said: “Typically, what we see on any announcement [that is] Brexit-related, if it is considered to be a removal of uncertainty, it is usually positive and if it is adding to the uncertainty, it is usually negative.”
POUND LIVE: LATEST GBP STERLING MOVEMENT HERE
Pound LIVE: GBP Sterling holding ground against euro as May prepares
Pound euro exchange rate: GBP unsteady as May prepares to sell deal
Moving forwards, the market’s attention has now shifted onto the final hurdle for securing domestic approval for the withdrawal agreement, in the Commons.
Boris Johnson, the former Foreign Secretary, was scathing, saying that the deal was a “humiliation”.
Writing in his column for The Daily Telegraph that the UK had become a “satellite state – a momento mori fixed on the walls of Brussels as a ghastly gaping warning to all who try to escape”.
At the same time this morning, the latest UK mortgage approvals figures were published, revealing an uptick to 39.69k in October from September’s 38.7k – a four-month high.
While this may seem like good news for estate agents, the figure is down 1.2 per cent on last year’s, and with increasing concerns over Brexit this has left pound Sterling relatively unmoved against the dollar.
Meanwhile the US dollar has been seeing heightened demand as investors seek out its safe haven status amidst increasing fears that the global economy is losing steam while trade tensions swirl.
US President Donald Trump will be meeting China’s President Xi Jingping in Buenos Aires on Friday at the G20 summit, where they will attempt to quell these trade fears.
Any progress the two leaders make on trade issues will be reflected in the value of US dollar, with a successful summit likely to boost the pound US dollar exchange rate.
For the rest of the week, however, the pound US dollar exchange rate will be sensitive to any further developments regarding Brexit, with Mrs May outlining her duty this week as being to “examine this deal in detail” and “… listen to our constituents and decide what is in our national interest”.
The pound US dollar will likely react to how Mrs May tackles the increasing scepticism amongst MPs, with fears of further Sterling volatility undoubtedly offsetting the pairing’s minor gains seen this morning.