Pound US Dollar exchange rate: GBP/USD slips despite stoic and stable consumer confidence

Despite this, the pound slid against the “greenback” over the course of the morning. 

Confidence improved slightly from -14 to -13, and commenting on the data, Joe Staton, GfK’s Client Strategy Director said: “It is worth bearing in mind that many economic indicators – employment levels, wage growth – remain positive.

“But it is frankly amazing that confidence is so stoic and stable in a world of sharp political instability and fear of the unknown.”

Meanwhile, UK Business Confidence slipped to its lowest since the month of the Brexit referendum, which likely weighed on Sterling. 

In news affecting the US dollar, the summit between US President Donald Trump and North Korean Leader Kim Jong-un ended with no agreement. 

This saw risk appetite from investors decrease, buoying the dollar. 

Commenting on the summit in Hanoi, Mr Trump said: “Sometimes you have to walk and this was one of those times.”

The sticking point was reported to be US sanctions placed on North Korea, with Kim Jong-un willing to dismantle the Yongbyon nuclear complex in exchange for lifting “all the sanctions”. 

Discussing this, Mr Trump stated: “It was about the sanctions. They wanted the sanctions lifted in their entirety and we couldn’t do that.”

This afternoon the US dollar could slide following the release of the US GDP figure for Q4 2018.

Annualised GDP is on target to increase by 2.3 percent compared to the previous year in which it rose by 3.4 percent. 

However, the dollar could recover slightly following the release of February’s Chicago PMI, which is predicted to increase to 57.

Tomorrow could see the pound slip further following the release of the Markit Manufacturing PMI for February.

If manufacturing growth slows as the forecast suggests, Sterling could slide further. 


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