Sterling Gains Against Dollar After Trump Speech

  • Posted by Shyam Gokani in Uncategorised
  • January 12, 2017
  • No Comments

Sterling rose this morning from its lowest levels for almost 32 years — excluding a “flash crash” in October — with the dollar weakened by a lack of detail on President-elect Donald Trump’s spending plans in his first news conference since his election.

The greenback had rallied since Trump’s victory in the Nov. 8 election, soaring to 14-year highs on the view that his fiscal stimulus programme would boost growth and inflation, leading to a faster pace of U.S. interest rate rises – the so-called “Trumpflation trade”.

Trump provided no clarity on economic policy, the dollar fell to four-week lows, giving a lift to sterling, which was trading more than 2 cents higher than Wednesday’s low

Sterling had plunged to as low as $1.2038 on Wednesday on worries that Britain will face a “hard” exit from the European Union, with immigration controls given priority over single market access.

That was its lowest level since May 1985, barring a brief crash to $1.1491 on Oct. 7 during a period of low liquidity.

Though sterling was trading up half a percent on the day at $1.2270 on Thursday, analysts said Brexit worries would act as a persistent drag on the currency.

The latest bout of nerves this week was driven by Prime Minister Theresa May, who sparked fears that Britain will lose single market access by saying over the weekend that Britain would not keep bits of EU membership.

Traders are now focused on a decision – expected in the coming days – from Britain’s Supreme Court on whether to approve a High Court ruling last year that said May’s government needed parliamentary approval before triggering “Article 50”, which will formally kick off Brexit negotiations.

Leave a Reply

Your email address will not be published.

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and for clients based in the United Kingdom and rest of the world, payment services for Currencies4you are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).For clients based in the European Economic Area, payment services for Currencies4you are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701). For clients based in the United States, payment services for Currencies4you are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York, NY 10011. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. Currencies 4 you's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. | Terms and Conditions | Privacy Statement | Careers