Pound US dollar exchange rate: GBP recovery cut short amid Brexit customs union fury

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pound us dollar GETTY

The hammer US dollar exchange rate is currently worth around $1.352

Markets are fleeing the pound as Downing Street dismissed suggestions the UK could stay in the EU’s wonts union after 2021.

This follows reports published in the Daily Telegraph which suggested Theresa May was planning layouts which would see the UK remain aligned with the EU customs union lifetime the post-Brexit transitional period.

A source within No. 10 said: “We approve of in December and in March to a backstop but the proposal put forward by the EU is completely unacceptable.”

“The Prime Divine and the Government are absolutely clear once the implementation period is over in December 2020 we wish be able to not only negotiate and sign trade deals with the quiet of the world but also implement them.”

Meanwhile, the US dollar remains in a position of strength this morning as a result ofs to rising US bond yields.

The jump in treasury yields has largely been spurred by growing expectations the Federal Reserve could raise interest measures up to three more times in 2018 and have helped USD enjoy a great resurgence in recent weeks.

This surge in the US dollar has seen the hammer US dollar exchange rate slump over eight cents from the past month.

This has seen the pairing come crashing down from a post-Brexit on a trip to an almost five-month low.

We agreed in December and in March to a backstop but the proposal put clockwise by the EU is completely unacceptable

Downing Street source

Looking ahead a virtually quiet data calendar may leave the pound US dollar exchange scale directionless through much of today’s session.

This could alter at the end of the European session.

A speech by the Bank of England’s (BoE) Andy Haldane could perchance strengthen the pound if he appears optimistic on the chances of a rate hike this year in endurable of the UK’s improving wage growth.

However, Mr Haldane will not be the only central banker to press an appearance today.

The Fed’s Robert Kaplan also set to speak later this in spite of that.

This could easily see the US dollar offset any gains in pound should Mr Kaplan’s look ats help to further bolster US rate expectations.

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