{"id":4376,"date":"2018-03-02T00:00:00","date_gmt":"2018-03-02T05:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100376-gbp-usd-trump-trade-war\/"},"modified":"2018-03-02T00:00:00","modified_gmt":"2018-03-02T05:00:00","slug":"100376-gbp-usd-trump-trade-war","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100376-gbp-usd-trump-trade-war\/","title":{"rendered":"GBP\/USD: Pound vs. Dollar Volatile Due to Trump Trade War"},"content":{"rendered":"<p>The pound US dollar exchange rate experienced a choppy session on Thursday. Brexit headlines and another appearance by US Federal Reserve Chair Jay Powell and a Trump trade tariff saw the pound US dollar exchange rate trade a 200-point range from a high of US$1.3916 to a low of $1.3728, before closing almost flat.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> 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<p> For example, it could be written: <em>1 GBP = 1.28934 USD<\/em> <\/p>\n<p> <em>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.<\/em> <\/p>\n<p> Or, if you were looking at it the other way around: <em>1 USD = 0.77786 GBP<\/em> <\/p>\n<p> <em>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.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Brexit headlines were once again responsible for pulling the pound lower in the previous session, as doubts surfaced again over the post Brexit transition period. EU Chief Negotiator Michel Barnier said in a speech, that UK businesses will not have absolute certainty over a post Brexit transition period until the end of negotiations, most likely early next year. Considering that Brexit is set to happen in March next year, this is not leaving UK businesses much time to prepare for either eventuality.<\/p>\n<p>The growing tensions between the twos sides and the huge distance between the position of the EU and the UK is means any agreement is still a long way away. Furthermore. time is not a luxury that the negotiators have. Should no transition deal be agreed, the UK will head for a hard Brexit from the EU. This would present extremely tough challenges for UK businesses and could have a heavy impact on the UK economy. This would be bad news for the pound.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>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 class=\"table table-bordered\">\n<p>Brexit remains in focus today, as UK Prime Minister Theresa May will give a landmark speech on Brexit. May will layout her vision for the post Brexit relationship with the EU. Any signs that she intends to distance the UK from the EU could pull the pound lower.<\/p>\n<h2><a href=\"#fed-chair-jay-powell-strikes-a-less-hawkish-tone-trump-starts-a-trade-war-\" name=\"fed-chair-jay-powell-strikes-a-less-hawkish-tone-trump-starts-a-trade-war-\"><\/a>Fed Chair Jay Powell strikes a less hawkish tone: Trump starts a trade war?<\/h2>\n<p>The dollar experienced high volatility in the previous session as US Fed Chair Jay Powell made a second appearance in Congress in so many days. This time, Mr Powell was slightly more conservative in his tone, which surprised the markets given his optimism towards the US economy and his eagerness for more rate hikes only on Tuesday. This slight change of tone was enough to confuse the markets and resulted in whipsaw action in the price.<\/p>\n<p>The dollar then dropped heavily, as President Trump announced trade tariffs of 25% on steel and 10% on aluminium. Market participants are nervous that Trump could ignite a trade war with China, Brazil or Canada, its main steel trading partners, which sent the dollar lower.<\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice 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 or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound US dollar exchange rate experienced a choppy session on Thursday. Brexit headlines and another appearance by US Federal Reserve Chair Jay Powell and a Trump trade tariff saw the pound US dollar exchange rate trade a 200-point range from a high of US$1.3916 to a low of $1.3728, before closing almost flat. What [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4377,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1394,1398],"class_list":{"0":"post-4376","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"category-usd","9":"tag-gbp","10":"tag-usd"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/USD: Pound vs. Dollar Volatile Due to Trump Trade War - 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\/100376-gbp-usd-trump-trade-war\/\" \/>\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\\\/100376-gbp-usd-trump-trade-war\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100376-gbp-usd-trump-trade-war\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: Pound vs. Dollar Volatile Due to Trump Trade War\",\"datePublished\":\"2018-03-02T05:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100376-gbp-usd-trump-trade-war\\\/\"},\"wordCount\":806,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100376-gbp-usd-trump-trade-war\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100376-gbp-usd-trump-trade-war.jpg\",\"keywords\":[\"gbp\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100376-gbp-usd-trump-trade-war\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100376-gbp-usd-trump-trade-war\\\/\",\"name\":\"GBP\\\/USD: Pound vs. Dollar Volatile Due to Trump Trade War - 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