{"id":4424,"date":"2018-03-20T00:00:00","date_gmt":"2018-03-20T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100400-gbp-usd-brexit-deal-pushes-gbp\/"},"modified":"2018-03-20T00:00:00","modified_gmt":"2018-03-20T04:00:00","slug":"100400-gbp-usd-brexit-deal-pushes-gbp","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/","title":{"rendered":"GBP\/USD: Pound Above $1.40 vs Dollar On Brexit Deal"},"content":{"rendered":"

The pound shot higher on Monday following news that the EU and the UK had agreed a post Brexit transition deal. The pound spiked to US$1.4088 before giving back some of these gains to close at US$1.4024.<\/p>\n\n\n\n\n\n
What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n
\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: 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.<\/em> <\/p>\n

Or, if you were looking at it the other way around: 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.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n

Pound traders have been watching Brexit negotiations closely for months. One of the key factors influencing the pound\u2019s direction has been the likelihood of a post Brexit transition deal. Finally today, just ahead of the EU Summit this Thursday, Brexit Secretary David Davis and EU Chief negotiator Michel Barnier announced that a transition pact had been agreed.<\/p>\n

The deal will see the UK abide by EU rules for 21 months post Brexit, but it will not have any say in making those rules. The UK has essentially succumbed to almost all the EU\u2019s demands, in order to progress talks onto the trade deal talks. However, the Northern Irish border remains a grey point. There is a backstop agreement that Northern Ireland will remain within the single market should no other solution to its border issue be agreed.<\/p>\n

This transition deal is still not legally binding \u2014 it will depend on a Brexit deal being agreed, however, it is a big step in the right direction. News of the transition deal boosted the pound as it is a step closer to avoiding a hard Brexit.<\/p>\n\n\n\n\n\n
Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit? <\/th>\n<\/tr>\n<\/thead>\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 class=\"table table-bordered\">\n

Today market participants will look once more at the UK economic calendar. UK inflation data could cause some volatility ahead of the Bank of England rate announcement on Thursday.<\/p>\n

<\/a>Politics Continue to Weigh onn Dollar<\/h2>\n

The dollar was out of favour in the previous session, as concerns over the stability of Trump\u2019s administration was once again under the spotlight, in addition to growing fears over a potential global trade war.<\/p>\n

President Trump over the weekend, tweeted against special counsel Mueller, challenging his probe into Russia\u2019s interference in the US election, particularly denouncing political bias on the part of Mueller. Trump fears that this probe could choke the life out of his Presidency and rumours had circulated that he would consider firing Mueller. This however, would certainly spell the end to his presidency.<\/p>\n\n\n\n\n\n
How does political risk have impact on a currency? <\/th>\n<\/tr>\n<\/thead>\n
Political risk drags on the confidence of consumers and businesses alike, which means both corporations and regular households are then less inclined to spend money. The drop in spending, in turn, slows the economy. Foreign investors prefer to invest their money in politically stable countries as well as those with strong economies. Signs that a country is politically or economically less stable will result in foreign investors pulling their money out of the country. This means selling out of the local currency, which then increases its supply and, in turn, devalues the money. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n

Investors will continue to watch developments in Washington whilst also looking towards the Fed’s rate decision on Wednesday.<\/p>\n\n\n\n
\n


\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 risk warning<\/a> page for more details.<\/em><\/small><\/p>\n

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":"

The pound shot higher on Monday following news that the EU and the UK had agreed a post Brexit transition deal. The pound spiked to US$1.4088 before giving back some of these gains to close at US$1.4024. What do these figures mean? When measuring the value of a pair of currencies, one set equals 1 […]<\/p>\n","protected":false},"author":163946601,"featured_media":4425,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1386,1394,1398],"class_list":{"0":"post-4424","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"category-usd","9":"tag-brexit","10":"tag-gbp","11":"tag-usd"},"acf":[],"yoast_head":"\nGBP\/USD: Pound Above $1.40 vs Dollar On Brexit Deal - 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\/100400-gbp-usd-brexit-deal-pushes-gbp\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tarun Gidwani\" \/>\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\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/\"},\"author\":{\"name\":\"Tarun Gidwani\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/cb9d08b81054b1281b909957fd8222cb\"},\"headline\":\"GBP\\\/USD: Pound Above $1.40 vs Dollar On Brexit Deal\",\"datePublished\":\"2018-03-20T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/\"},\"wordCount\":879,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg\",\"keywords\":[\"Brexit\",\"gbp\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/\",\"name\":\"GBP\\\/USD: Pound Above $1.40 vs Dollar On Brexit Deal - Currency Live\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg\",\"datePublished\":\"2018-03-20T04:00:00+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/cb9d08b81054b1281b909957fd8222cb\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/#primaryimage\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg\",\"contentUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg\",\"width\":725,\"height\":400,\"caption\":\"GBP\\\/USD: Pound Above $1.40 vs Dollar On Brexit Deal\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100400-gbp-usd-brexit-deal-pushes-gbp\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"GBP\\\/USD: Pound Above $1.40 vs Dollar On Brexit Deal\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\",\"name\":\"Currency Live\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/currencylive.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/cb9d08b81054b1281b909957fd8222cb\",\"name\":\"Tarun Gidwani\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4dbaa089411872645004689c22d91d3bfae46e193bd8084dc6a71fa9aa7946b7?s=96&d=blank&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4dbaa089411872645004689c22d91d3bfae46e193bd8084dc6a71fa9aa7946b7?s=96&d=blank&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4dbaa089411872645004689c22d91d3bfae46e193bd8084dc6a71fa9aa7946b7?s=96&d=blank&r=g\",\"caption\":\"Tarun Gidwani\"},\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/author\\\/tarun-gidwani\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GBP\/USD: Pound Above $1.40 vs Dollar On Brexit Deal - Currency Live","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/","twitter_misc":{"Written by":"Tarun Gidwani","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/#article","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/"},"author":{"name":"Tarun Gidwani","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/cb9d08b81054b1281b909957fd8222cb"},"headline":"GBP\/USD: Pound Above $1.40 vs Dollar On Brexit Deal","datePublished":"2018-03-20T04:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/"},"wordCount":879,"image":{"@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg","keywords":["Brexit","gbp","usd"],"articleSection":["GBP","USD"],"inLanguage":"en-US","copyrightYear":"2018","copyrightHolder":{"@id":"https:\/\/currencylive.com\/news\/#organization"}},{"@type":"WebPage","@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/","url":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/","name":"GBP\/USD: Pound Above $1.40 vs Dollar On Brexit Deal - Currency Live","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/#primaryimage"},"image":{"@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg","datePublished":"2018-03-20T04:00:00+00:00","author":{"@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/cb9d08b81054b1281b909957fd8222cb"},"breadcrumb":{"@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/#primaryimage","url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg","contentUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg","width":725,"height":400,"caption":"GBP\/USD: Pound Above $1.40 vs Dollar On Brexit Deal"},{"@type":"BreadcrumbList","@id":"https:\/\/currencylive.com\/news\/100400-gbp-usd-brexit-deal-pushes-gbp\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/currencylive.com\/news\/"},{"@type":"ListItem","position":2,"name":"GBP\/USD: Pound Above $1.40 vs Dollar On Brexit Deal"}]},{"@type":"WebSite","@id":"https:\/\/currencylive.com\/news\/#website","url":"https:\/\/currencylive.com\/news\/","name":"Currency Live","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/currencylive.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/cb9d08b81054b1281b909957fd8222cb","name":"Tarun Gidwani","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4dbaa089411872645004689c22d91d3bfae46e193bd8084dc6a71fa9aa7946b7?s=96&d=blank&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4dbaa089411872645004689c22d91d3bfae46e193bd8084dc6a71fa9aa7946b7?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4dbaa089411872645004689c22d91d3bfae46e193bd8084dc6a71fa9aa7946b7?s=96&d=blank&r=g","caption":"Tarun Gidwani"},"url":"https:\/\/currencylive.com\/news\/author\/tarun-gidwani\/"}]}},"jetpack_featured_media_url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100400-gbp-usd-brexit-deal-pushes-gbp.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/4424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/users\/163946601"}],"replies":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/comments?post=4424"}],"version-history":[{"count":0,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/4424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media\/4425"}],"wp:attachment":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media?parent=4424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/categories?post=4424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/tags?post=4424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}