Published On: Wed, Aug 21st, 2019

Pound US dollar exchange rate: GBP/USD eases as no-deal fears rise | City & Business | Finance

Ireland’s Deputy Prime Minister Simon Covey poured further fuel on the Brexit fire when he said a disorderly exit from the EU was now “far more likely”, blaming Boris Johnson’s faltering negotiations. This follows Mr Johnson’s letter to President of the European Council, Donald Tusk, in which he referred to the Irish backstop as “anti-democratic” and called for its removal from the withdrawal agreement.  

Mr Tusk rejected the proposal with a scathing rebuttal: “those against the backstop and not proposing realistic alternatives in fact support re-establishing a border. Even if they do not admit it.”

With the Conservative government and the EU fundamentally opposed over the backstop issue and negotiations locked in stalemate, Sterling traders remain jittery.

Meanwhile, the US dollar edged higher ahead of the Federal Open Market Committee (FOMC) minutes which are due out later today.

Geopolitical tensions between the US and China show no signs of easing with US President Donald Trump vowing to “take China on” today, disregarding any short-term impact on the economy.

Mr Trump tweeted: “China has been ripping this country off for 25 years, for longer than that and it’s about time whether it’s good for our country or bad for our country short term.”

The US existing home sales figure for July will be published today.

This is expected to increase from 5.27 million to 5.39 million, offering a slight boon to the US economy. 

Looking ahead, the Pound US Dollar exchange rate is likely to decline following Boris Johnson’s visit to Europe, especially if this deepens the withdrawal agreement impasse. 

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