{"id":5175,"date":"2019-01-09T00:00:00","date_gmt":"2019-01-09T05:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100803-gbp-usd-will-pound-fall-vs-dollar\/"},"modified":"2019-01-09T00:00:00","modified_gmt":"2019-01-09T05:00:00","slug":"100803-gbp-usd-will-pound-fall-vs-dollar","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100803-gbp-usd-will-pound-fall-vs-dollar\/","title":{"rendered":"GBP\/USD: Will The Pound Fall vs Dollar As Brexit Returns To Parliament"},"content":{"rendered":"<p>The pound closed 0.1% higher versus the dollar on Tuesday. The pound US dollar exchange rate fell across most of the session before rebounding higher later in the day, cementing a close at US$1.2738.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th><small> What do these figures mean? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> 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.For example, it could be written:<em>1 GBP = 1.28934 USD<\/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. Or, if you were looking at it the other way around:<em>1 USD = 0.77786 GBP<\/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. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>As trader attention focused on Brexit, the pound slipped lower. Senior conservative ministers joined a cross-party group which voted 303 \u2014 296 in favor of a no-deal Brexit prevention tactic. The 303 ministers voted in favor of preventing the government from modifying taxes in the case of a no-deal Brexit. This is the first of several similar amendments that political analysts believe will be voted on in bills to the same effect.<\/p>\n<p>These no-deal Brexit prevention tactics could mean that ministers are more likely to not vote for Theresa May\u2019s Brexit deal. Many ministers dislike Theresa May\u2019s deal but they are also against a no-deal Brexit. Up until now the reason for voting for Theresa May\u2019s Brexit deal was in fear of a no-deal Brexit. However, if ministers tie the government&#8217;s hand over a no-deal Brexit then the chances of Theresa May securing the numbers to push her Brexit deal through Parliament are doubtful. The pound initially fell reflecting concerns of Brexit uncertainties should Theresa May\u2019s deal fail. The pound later rebounded as the prospect of a no-deal Brexit slipped further away.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th><small> Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> 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. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Brexit will remain in focus as the house of Commons debates the Brexit deal for 4 days, starting today.<\/p>\n<h2><a href=\"#dollar-outlook-still-gloomy\" id=\"dollar-outlook-still-gloomy\"><\/a>Dollar Outlook Still Gloomy<\/h2>\n<p>The dollar traded broadly higher versus its peers on Tuesday after falling for the past two sessions. The dollar trades inversely to the euro. Growing signs of recession risk in Germany and the eurozone following weak economic readings dragged the euro lower boosting the dollar.<\/p>\n<p>Despite yesterday\u2019s rally, the outlook for the dollar is still gloomy after the Federal Reserve\u2019s Chair Jerome Powell said that the central bank remained flexible over monetary policy. Powell also confirmed that the bank will be sensitive to the downside risks in the market.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th><small> Why do raised interest rates boost a currency\u2019s value? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> 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. Higher interest rate environments tend to offer higher yields. So, if the interest rate or at least the interest rate expectation of a country is relatively higher compared to another, then it attracts more foreign capital investment. Large corporations and investors need local currency to invest. More local currency used then boosts the demand of that currency, pushing the value higher. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Today the US economic calendar is extremely light as the continued US government shutdown means that a significant amount of data is being withheld from the markets. The minutes from the Federal Reserve meeting are due, however, but they could be considered out of date following Powell\u2019s speech on Friday.<\/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 closed 0.1% higher versus the dollar on Tuesday. The pound US dollar exchange rate fell across most of the session before rebounding higher later in the day, cementing a close at US$1.2738. 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":5176,"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-5175","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: Will The Pound Fall vs Dollar As Brexit Returns To Parliament - 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\/100803-gbp-usd-will-pound-fall-vs-dollar\/\" \/>\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\\\/100803-gbp-usd-will-pound-fall-vs-dollar\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100803-gbp-usd-will-pound-fall-vs-dollar\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: Will The Pound Fall vs Dollar As Brexit Returns To Parliament\",\"datePublished\":\"2019-01-09T05:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100803-gbp-usd-will-pound-fall-vs-dollar\\\/\"},\"wordCount\":881,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100803-gbp-usd-will-pound-fall-vs-dollar\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100803-gbp-usd-will-pound-fall-vs-dollar.jpg\",\"keywords\":[\"gbp\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100803-gbp-usd-will-pound-fall-vs-dollar\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100803-gbp-usd-will-pound-fall-vs-dollar\\\/\",\"name\":\"GBP\\\/USD: Will The Pound Fall vs Dollar As Brexit Returns To Parliament - 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