{"id":4713,"date":"2018-07-13T00:00:00","date_gmt":"2018-07-13T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100558-gbp-usd-us-trade-deal-fears\/"},"modified":"2018-07-13T00:00:00","modified_gmt":"2018-07-13T04:00:00","slug":"100558-gbp-usd-us-trade-deal-fears","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100558-gbp-usd-us-trade-deal-fears\/","title":{"rendered":"GBP\/USD: Pound Dives vs Dollar As US Trade Deal Hopes Fade"},"content":{"rendered":"<p>The pound US dollar exchange rate ended the session more or less where it had started trading on Thursday morning. Yet as trading started in Asia, the pound dived to a low of US$.3171.<\/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>\n<p>With no UK data releases scheduled on the economic calendar, investors were once again looking towards Brexit. UK Prime Minister Theresa May published her White paper on the post Brexit EU \u2014 UK relationship. This was just a fleshing out of the agreement imposed by the Prime Minister on her cabinet last weekend, which resulted in several high-profile resignations. The white paper is a softer version of Brexit, more aligned with the EU than what most Brexit supporters wanted. Whilst this could be good news for UK businesses and therefore the economy, Brexit supporters say it is not what they voted for.<\/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>\n<p>Theresa May still needs the EU to accept her proposal and it seems that they could be taking a softer stance already. Chief negotiator sounded optimistic ahead of reading the white paper. Negotiations will begin next week.<\/p>\n<p>However Trump&#8217;s declaration, as he landed on British soil, that the softer Brexit plans \u201cprobably kills off\u201d US trade deal hopes sent the pound lower.<\/p>\n<p>Today there is no data to be released for the UK. Therefore, market participants will stay focused on Brexit.<\/p>\n<h2><a href=\"#us-inflation-closes-in-on-3\" id=\"us-inflation-closes-in-on-3\"><\/a>US Inflation Closes In On 3%<\/h2>\n<p>The dollar remained subdued on Thursday after rallying hard earlier in the week. Inflation data that was marginally weaker than what analysts had been anticipating also took the shine off the dollar. Inflation as measured by consumer price index, increased by 2.9% year on year in June. However, on a monthly basis inflation increased by 0.1%, slightly lower than the 0.2% forecast by analysts. The slight miss on the monthly print, in addition to a slight miss on average weekly wages growth last Friday, cast a small doubt in the minds of investors over the Fed\u2019s path of future interest rate rises, which weighed on the dollar.<\/p>\n<p>Interest rates.<\/p>\n<p>Today investors will look towards US sentiment data to see whether trade war concerns have started to impact on the US. If so the dollar could come under pressure.<\/p>\n<hr \/>\n<p><small><\/p>\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 ended the session more or less where it had started trading on Thursday morning. Yet as trading started in Asia, the pound dived to a low of US$.3171. What do these figures mean? When measuring the value of a pair of currencies, one set equals 1 unit and the [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4714,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1394,1398],"class_list":["post-4713","post","type-post","status-publish","format-standard","has-post-thumbnail","category-gbp","category-usd","tag-gbp","tag-usd"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/USD: Pound Dives vs Dollar As US Trade Deal Hopes Fade - 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\/100558-gbp-usd-us-trade-deal-fears\/\" \/>\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\\\/100558-gbp-usd-us-trade-deal-fears\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100558-gbp-usd-us-trade-deal-fears\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: Pound Dives vs Dollar As US Trade Deal Hopes Fade\",\"datePublished\":\"2018-07-13T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100558-gbp-usd-us-trade-deal-fears\\\/\"},\"wordCount\":764,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100558-gbp-usd-us-trade-deal-fears\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100558-gbp-usd-us-trade-deal-fears.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\\\/100558-gbp-usd-us-trade-deal-fears\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100558-gbp-usd-us-trade-deal-fears\\\/\",\"name\":\"GBP\\\/USD: Pound Dives vs Dollar As US Trade Deal Hopes Fade - 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