Yesterday was a rough day for the pound as it became increasingly clear that the Prime Minister, Theresa May, was living on borrowed time. Following the almost universal rejection of her ‘new’ EU withdrawal deal, pressure mounted on her to resign.
USD exchange rates came under pressure as policymakers revised their dot plots to suggest that interest rates will remain on hold for the remainder of the year.
With the Fed looking set to remain on hold for some months to come USD exchange rates were left to trend lower across the board, even as market risk appetite deteriorated.
Weaker readings from the latest US manufacturing and services PMIs put additional pressure on the US dollar, with confidence in the underlying strength of the world’s largest economy taking a knock.
Even so, USD exchange rates could find support this week if March’s consumer confidence index strengthens as forecast.
If US consumers maintain a positive outlook this should offer a boost to the domestic economy, limiting the impact of the manufacturing slowdown.
Any weakness in the latest personal consumption expenditure core, though, could prompt fresh selling pressure as this measure remains the Fed’s preferred gauge of inflation.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)