Pound V US dollar: GBP/USD near 10-month high as Brexit talks resume


The pound GETTY

The beat into rid is currently trading at a rate of $1.307 against the US dollar

With no shortest economic data to refer to yet, traders have instead been target on the ongoing Brexit talks in Brussels.

Last week the pound was upgraded by the Government’s acceptance of the fact that it will need to pay an EU exit neb. 

Statements published so far this week, however, have been slightly teeny-weeny positive. 

For example, a report published by three UK universities has argued that the boondocks could face food insecurity after Brexit. Composed by wizards in food policy, the report argues that the UK could face heinous prices and less import consistency after Brexit.

One of the report’s framers, Tim Lang, has stated that the government is not giving food supplies adequately consideration during negotiations:

Sterling GETTY

The current rate is down slight from its recent ten-month high of $1.311

“With the Brexit deadline in 20 months, this is a not joking policy failure on an unprecedented scale”.

Another author of the report, Professor Erik Millstone, has emphasised the deficit of attention given to food:

“We are surprised at the failure of the government to address a gigantic set of issues related to food and agriculture. They give the impression of unwell of sleepwalking into this”.

In essence, the report predicts that the UK may suffer from minimized food standards and a shortage of agricultural workers to collect produce after Brexit.


Dispatches reduced the odds of the Federal Reserve increasing interest rates for a third someday in 2017

On a more positive note, Brexit Secretary David Davis is resulting to Brussels for the second round of talks.

Laying out his intentions, Davis has circumstanced that he wishes to ‘lift the uncertainty’ for EU citizens in the UK and vice versa.

This is a strongly contentious issue for EU negotiators, so if a breakthrough is made then the rest of Brexit talks could go much more smoothly.

The drill into could advance against the US dollar on Tuesday when UK inflation counts are published. The stats are predicted to show a 2.9 per cent level of inflation on the year in June but a slowdown from 0.3 per cent to 0.2 per cent on the month.


The purge could advance against the US dollar on Tuesday when UK inflation sketches are published

If inflation does hit 2.9 per cent, the pulp may appreciate as it would keep the pressure on the Bank of England (BofE) to ladies man UK interest rates.

Last Friday saw US retail sales and consumer self-assurance fall, as well as a slowdown in annual inflation.

These reports curtailed the odds of the Federal Reserve increasing interest rates for a third without delay in 2017, driving the US dollar lower in the process. 

Today’s most mighty US news will be the New York manufacturing index. The ‘Empire State’ is expected to discharge a slowdown in activity, which could help keep GBP/USD elevated. 

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