GBP/USD: Brexit Lowers Pound Close To $1.30 vs. Dollar
  • Pound (GBP) supported by tentative post Brexit trade deal hopes
  • US Dollar (USD) slips despite concerns over lock down being re-imposed
  • US personal consumption expenditure & consumer confidence in focus
  • Pound US Dollar exchange rate +0.6% across the week after -1.5% last week

The Pound is edging tentatively higher versus the US Dollar on Friday after closing flat in the previous session. The Pound US Dollar exchange rate settled on Thursday at US$1.2418.

At 06:15 UTC, GBP/USD trades +0.15% at US$1.2433 ahead of what is expected to be a relatively quiet session.

Hopes surrounding a Brexit trade deal under pinned the Pound in the previous session and continue to do so today, as investors look ahead to the start of face to face post Brexit trade talks next week. EU Chief Negotiator, Michel Barnier had boosted optimism saying that there was still time for a deal to be reached, whilst also hinting at flexibility to get a deal done.

UK Brexit Secretary David Frost sounded less optimistic when he said that “some of the EU’s unrealistic positions will have to change if we are to move forward”. The Pound is shrugging these comments off for now.

The US Dollar is edging lower versus its major peers even as concerns of rising coronavirus cases remain present.

Fears over lockdowns being re-imposed and economies reopening more slowly has dragged on sentiment across the week, boosting demand for safe havens, such as US Dollar.

Texas has put its economic reopening on hold as new coronavirus cases soar. The state saw 5,996 new cases on Thursday, the highest in the nation for the US which also set another daily record of 42,000 new daily infections.

Texas had adopted one of the most aggressive reopening plans, lifting restrictions far more quickly that New York, which is faring much better.

On the domestic data front, US Durable goods beat expectations jumping +15.5%. US GDP also confirmed a -5% contraction on an annualised basis in the first quarter. However, US initial jobless claims revealed that the US labour market improvement showed signs of slowing.

Today investors will look to US personal consumption expenditure data and consumer confidence for further impetus. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.