{"id":11438,"date":"2019-10-10T04:00:57","date_gmt":"2019-10-10T08:00:57","guid":{"rendered":"https:\/\/currencylive.com\/?p=11438"},"modified":"2019-10-10T03:35:57","modified_gmt":"2019-10-10T07:35:57","slug":"101231-gbp-usd-pair-rise-on-trade-deal-optimism","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\/","title":{"rendered":"GBP\/USD: Pair Rise On US -Sino Trade Deal Optimism"},"content":{"rendered":"

The pound closed 0.1% lower versus the US dollar at US$1.2212 amid growing no deal Brexit fears. The pair is advancing in early trade on Thursday.<\/p>\n

Pound investors remain focused on Brexit. The pound briefly spiked higher on Wednesday before continuing its downward trajectory. Reports that the EU might offer a time limit on the Irish backstop lifted the pound, before a flat out rejection of the concession by the Northern Irish DUP sent the pound back lower again. Stalled Brexit talks have investors increasingly fearful that the UK will crash out of the EU on 31st<\/sup> October without a deal.<\/p>\n

In a last-ditch attempt to break the stalemate, British Prime Minister Boris Johnson will meet with his Irish counterpart Leo Varadkar. Boris Johnson will be hoping to arrive at a breakthrough and has said that he is cautiously optimistic.<\/p>\n

 <\/p>\n\n\n\n\n
Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit?<\/strong><\/td>\n<\/tr>\n
A soft Brexit implies anything less than UK\u2019s complete withdrawal from the EU. For example, it could mean the UK retains some form of membership to the European Union single market in exchange for some free movement of people, i.e. immigration. This is considered more positive than a \u201chard\u201d Brexit, which is a full severance from the EU. The reason \u201csoft\u201d is considered more pound-friendly is because the economic impact would be lower. If there is less negative impact on the economy, foreign investors will continue to invest in the UK. As investment requires local currency, this increased demand for the pound then boosts its value.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

In addition to Brexit developments, investors will also be watching the UK economic calendar. A barrage of data including manufacturing and industrial production, in addition to the monthly GDP could all provide clues as to the health of the British economy three weeks before Brexit.<\/p>\n

Will US Inflation Boost Dollar?<\/strong><\/h3>\n

The dollar ended the previous session broadly flat versus most of its peers, as investors weighed up trade talk developments and the minutes from the September Federal Reserve monetary policy meeting the FOMC.<\/p>\n

The minutes showed that most policymakers were in favour of a second interest rate cut. However, they were generally more worried by the risks associated to trade tensions, geopolitics and the global economy rather than by the current state of the economy. The dollar had a muted reaction to the release.<\/p>\n

Trade has been the other central focus for dollar investors. 13th<\/sup> round of trade talks are due to begin between China and US today. Over the past few days tensions between the two powers had escalated after Trump blacklisted 28 Chinese companies and restricted Chinese officials\u2019 visas. Despite the negativity, China said it was keen to reach a limited agreement. President Trump was also sounding very optimistic over the chances of a deal. The reduced geopolitical risk means investors are moving out of the safe haven dollar<\/p>\n

The dollar could get a boost from US inflation figures. Analysts expect consumer prices to have increased to 1.8% year on year in September, up from 1.7%.<\/p>\n

 <\/p>\n\n\n\n\n
What do these figures mean?<\/strong><\/td>\n<\/tr>\n
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n

For example, it could be written:<\/p>\n

1 GBP = 1.28934 USD<\/em><\/p>\n

Here, \u00a31 is equivalent to approximately $1.29. This specifically measures the pound\u2019s worth against the dollar. If the US dollar amount increases in this pairing, it\u2019s positive for the pound.<\/p>\n

Or, if you were looking at it the other way around:<\/p>\n

1 USD = 0.77786 GBP<\/em><\/p>\n

In this example, $1 is equivalent to approximately \u00a30.78. This measures the US dollar\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

This publication is provided as general information only and is not intended as an exhaustive treatment of its subject. TransferWise Inc. and its affiliates (“we” or “us”) expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of this publication, and 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 in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from us.\u00a0 We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

The pound closed 0.1% lower versus the US dollar at US$1.2212 amid growing no deal Brexit fears. The pair is advancing in early trade on Thursday. Pound investors remain focused on Brexit. The pound briefly spiked higher on Wednesday before continuing its downward trajectory. Reports that the EU might offer a time limit on the […]<\/p>\n","protected":false},"author":163946597,"featured_media":5575,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1396,1386,1408,1394,1409,1387,1391,1392,1479,1397,1398],"class_list":{"0":"post-11438","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"category-usd","9":"tag-boris-johnson","10":"tag-brexit","11":"tag-fed","12":"tag-gbp","13":"tag-gdp","14":"tag-inflation","15":"tag-pound","16":"tag-sterling","17":"tag-trade-talks","18":"tag-us-dollar","19":"tag-usd"},"acf":[],"yoast_head":"\nGBP\/USD: Pair Rise On US -Sino Trade Deal Optimism - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: Pair Rise On US -Sino Trade Deal Optimism\",\"datePublished\":\"2019-10-10T08:00:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\\\/\"},\"wordCount\":769,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100627-gbp-usd-fed-rate-decision.jpg\",\"keywords\":[\"boris johnson\",\"Brexit\",\"fed\",\"gbp\",\"gdp\",\"Inflation\",\"pound\",\"sterling\",\"trade talks\",\"us dollar\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101231-gbp-usd-pair-rise-on-trade-deal-optimism\\\/\",\"name\":\"GBP\\\/USD: Pair Rise On US -Sino Trade Deal Optimism - 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