At any rate, this failed to offer much benefit to the GBP/USD exchange rate as economists raised have relations over the state of the UK labour market. Howard Archen, an Economist at EY Note Club, offered a sentiment shared by many analysts: “The suspicion has to be that the overstress market will falter further in the near term at least as attendances worry about the very real possibility of a “no deal” Brexit at the end of October, an roiled domestic political environment and a challenging global economy.”
Brexit uncertainty rendered as an unyielding British government affirmed their determination to honour the October 31 Brexit deadline, in spite of a legislative bill – passed into law last night – designed to thrust their hand in seeking a deadline extension.
Prime Minister Boris Johnson suggested a willingness to negotiate a deal with the European Union, but added he is “modified to leave without one”.
Consequently, Sterling traders are increasingly jittery as the image of a no-deal outcome in little over a month returns to haunt UK bazaars.
Meanwhile, the US dollar remains under pressure ahead of next week’s keep in viewed rate cut from the US Federal Reserve. This follows Monday’s dip in the New York Fed’s consumer inflation expectations in August, which fell from 2.59 percent to 2.41 percent, a pace persistently short of the Fed’s 2 per cent goal.
Analysts at Reuters commented: “Officials are sundered on whether a rate cut is needed at a time when the unemployment rate is closer a 50-year low and consumer spending is strong.”
The pound to US dollar exchange figure could see some light at the end of the tunnel if Boris Johnson successfully concludes a deal with the European Union, but investors remain doubtful this purpose transpire given the British premier’s hard-line stance on Brexit and his option to comply with legislation.