Pound US dollar exchange rate: GBP/USD down as UK consumer confidence dwindles
The figures, released by Gfk, showed consumer confidence had plummeted by around 30 per cent since September, disappointing Sterling investors who had hoped to see an increase. Yesterday also saw the release of the Bank of England’s mortgage approvals for October, which showed a better-than-expected 67.086K. There was some more positive housing news today, with November’s Nationwide house prices increasing by an above-forecast 1.9 per cent compared to last year.
Pound US dollar exchange rate: GBP/USD in limbo as markets await BoE GBP slumps against USD following Carney’s chas warning
Nevertheless, the figures were undermined by continued Brexit uncertainty after Theresa May issued a veiled threat to MPs yesterday, hinting that there would be chaos if members failed to back her withdrawal agreement in Parliament:
Her warning came after the Bank of England Governor Mark Carney’s gloomy economic forecast in which he suggested Sterling would face a 25 per cent nosedive, house prices would crash 30 per cent and GDP would slump 8 per cent if a no-deal Brexit were to occur.
The US dollar, meanwhile, was bolstered by October’s personal spending figures, which showed a better-than-expected increase of 0.6 per cent, against last month’s 0.2 per cent.
These followed on from a monthly increase in US personal incomes, which were also positive.
USD remains steady today as US President Donald Trump arrives in Argentina for the G20 summit.
GBP/USD is down around 0.2 per cent today (Image: GETTY)
‘Greenback’ Investors will be paying close attention to any comments relating to trade between the US and China, with Mr Trump due to meet Chinese President Xi Jinping on Saturday.
Tensions are expected to be high, with Mr Trump previously announcing a possible increase of $200bn on Chinese imports.
However both leaders have showed a willingness to come to a consensus over this weekend, and this has bolstered market optimism.
Today will also see the release of the Chicago Fed PMIs which are expected to decrease, potentially denting the US dollar.
Looking ahead, Monday will see the release of UK manufacturing PMIs which are expected to show an increase.
However, with manufacturing being a relatively small sector within the UK economy, any positive news on this front is likely to be overshadowed by Brexit sentiment and the goings on at the G20 summit in Buenos Aires.