{"id":47200,"date":"2019-10-23T04:00:17","date_gmt":"2019-10-23T08:00:17","guid":{"rendered":"https:\/\/currencylive.com\/?p=47200"},"modified":"2019-10-23T03:49:55","modified_gmt":"2019-10-23T07:49:55","slug":"101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\/","title":{"rendered":"GBP\/USD: Pound Declines As Brexit Delay Unavoidable"},"content":{"rendered":"<p>The pound weakened against the US dollar on Tuesday after UK MP\u2019s rejected Boris Johnson\u2019s plan to fast track Brexit through Parliament. The pound US dollar exchange rate closed Monday 0.6% lower at US$1.2884. The pair is edging higher in early trade on Wednesday.<\/p>\n<p>British Prime Minister Boris Johnson\u2019s Brexit deal made it over the first hurdle. MP\u2019s voted 329 to 299 in favour of the new deal. However, MP\u2019S drew the line there and refused to back a fast track procedure to push the deal through Parliament in 3 days. The timetable was rejected 322 votes to 308.<\/p>\n<p>This means that it is virtually impossible for the UK to leave the EU with a Brexit deal by the end of the month. Whilst the pound slid following the result because uncertainty increases, the losses shouldn\u2019t be too steep given that the two votes also take the UK even further away from a no deal Brexit.<\/p>\n<p>The UK will now wait for approval for an extension from the EU. If the EU passes a short extension, the bill could receive some amendments and then pass in due course. If the EU grants a long extension, the outlook is more uncertain. This could open to the door to an election and or a move by the opposition for a second referendum.<\/p>\n<h3><strong>Dollar Shrugs Off Weak Existing Home Sales<\/strong><\/h3>\n<p>The dollar has had a quiet start to the week with few trade headlines to prompt movement in the greenback. Last week US economic data heightened concerns over the health of the US economy, dragging the dollar lower. On Tuesday US dollar investors digested more disappointing data.<\/p>\n<p>Following two straight months of gains, US existing homes sales declined by more than analysts had expected in September. The Federal Reserve has cut interest rates twice this year and the cheaper mortgages have offered support to the housing market. Market participants believe that the Fed could cut rates again in the monetary policy meeting later this month.<\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Why do interest rate cuts drag on a currency\u2019s value?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Lower interest rate environments tend to offer lower yields. So, if the interest rate or at least the interest rate expectation of a country is relatively lower compared to another, then foreign investors look to pull their capital out and invest elsewhere. Large corporations and investors sell out of local currency to invest elsewhere. More local currency is available\u00a0 as the demand of that currency declines, dragging the value lower.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>There is no high impacting US data due for release today. Investors will look ahead to tomorrow\u2019s durable goods figures.<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>What do these figures mean?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>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:<\/p>\n<p><em>1 GBP = 1.28934 USD<\/em><\/p>\n<p>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<p>Or, if you were looking at it the other way around:<\/p>\n<p><em>1 USD = 0.77786 GBP<\/em><\/p>\n<p>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>&nbsp;<\/p>\n<hr \/>\n<h6><em>Currencylive.com is a site operated by TransferWise Inc. (&#8220;We&#8221;, &#8220;Us&#8221;), 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 currencylive.com do not represent our views.<\/em><\/h6>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound weakened against the US dollar on Tuesday after UK MP\u2019s rejected Boris Johnson\u2019s plan to fast track Brexit through Parliament. The pound US dollar exchange rate closed Monday 0.6% lower at US$1.2884. The pair is edging higher in early trade on Wednesday. British Prime Minister Boris Johnson\u2019s Brexit deal made it over the [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4403,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1396,1386,1594,1394,1535,1474,1391,1392,1397,1398],"class_list":{"0":"post-47200","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-deal","12":"tag-gbp","13":"tag-home-sales","14":"tag-parliament","15":"tag-pound","16":"tag-sterling","17":"tag-us-dollar","18":"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 Declines As Brexit Delay Unavoidable - 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\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\/\" \/>\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\\\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: Pound Declines As Brexit Delay Unavoidable\",\"datePublished\":\"2019-10-23T08:00:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\\\/\"},\"wordCount\":823,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100389-gbp-eur-brexit-hope-lifts-pound.jpg\",\"keywords\":[\"boris johnson\",\"Brexit\",\"deal\",\"gbp\",\"home sales\",\"parliament\",\"pound\",\"sterling\",\"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\\\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101294-gbp-usd-pound-declines-as-brexit-delay-unavoidable\\\/\",\"name\":\"GBP\\\/USD: Pound Declines As Brexit Delay Unavoidable - 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