Pound to dollar exchange rate: GBP recovers against USD after Article 50 is triggered

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The GBP/USD the Board rate bounced back from a low of $1.237 to achieve a high of $1.247 earlier stabilising around the day’s opening levels.

The pound also jumped by remaining 0.5 per cent against the euro to return to trending above €1.154.

PM May resulted a statement saying: “Today the government acts on the democratic will of the British people and it operations too on the clear and convincing position of this House. 

“The Article 50 prepare is now under way and in accordance with the wishes of the British people the United Realm is leaving the European Union. 

“This is an historic moment from which there can be no turf out d dress back.” 

Although some economists had expected the pound to drop in retort to the triggering of Article 50, the muted response of GBP exchange rates implies that the event had already been priced into the currency in the lead of time.

US consumer confidence surged to a more than 16-year ear-splitting in March amid growing labour market optimism while the virtues trade deficit narrowed sharply in February, indicating the economy was regaining thrust after faltering at the start of the year. 

The economy’s strengthening fundamentals were underscored by other statistics on Tuesday showing further increases in house prices in January. Nutty consumer confidence and rising household wealth from the home cost gains suggest a recent slowdown in consumer spending, which has disable growth, is likely temporary.

Further US dollar support came in the texture of President Donald Trump’s determination to put tax reform at the top of his agenda, and the US dollar balanced broadly stronger in spite of Federal Reserve Chairwoman Janet Yellen asserting that the US travail market still faces significant challenges. 

The activation of Article 50 is today’s big gossip item.

It has been almost ten months since the UK voted to leave the EU, and the postponement in triggering Article 50 has created a lot of uncertainty. As the currency market loathes uncertainty, the pound has been feeling the pressure.

Although sterling has stabilised in the after few months after striking a succession of multi-year lows, currency pairs sort GBP/USD could dip once Brexit begins in earnest later today.

Putting, as the activation of Article 50 has been so long expected, some economists conjecture the pound has already declined as much as it is going to.

If that proves to be the patient, the removal of one layer of uncertainty may actually benefit the pound and help it regain ones strength yesterday’s losses.

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