020 7898 0500Over the past three months, the US dollar has depreciated by 8% against the pound, as fresh revelations about the Trump administration seem to come out almost every single day. The White House confirmed Donald Trump had been involved with his son’s statement relating to the Russian emails.
This strengthening against the dollar could go a long way to stabilising UK inflation and help push sterling towards US$1.35 in the coming months. At the same time, there is the long-term view that the dollar could strengthen against a basket of currencies as the Federal Reserve continues to sell assets and normalise monetary policy.
The GBP/USD pairing reached more than 1.3200 yesterday and managed to hold it ahead of the US opening, despite a disappointing macroeconomic headline for the UK. The EUR/USD pairing continued its bullish move and held above 1.1800 before the US opening. Meanwhile, ADP non-farm employment change data came in at 178,000 – which is an estimated change that leads to Friday’s data release. This had little effect on the market overall.
Today we have unemployment claims data and ISM non-manufacturing purchasing managers’ index.
