Donald trump has been accused recently of being a racist (amongst other things) after his tweet calling for four US congresswomen to “go back” to their unspecified countries.

Currency Pair% Change (Month)Difference on £200,000
GBPUSD1.93%$4,840

The House passed a resolution that the President’s comments were racist with 240 votes to 187. This latest tweet from the US President has been condemned by members of both the Democrats and Republicans. Shortly after the resolution passed, Representative Al Green introduced new articles of impeachment against the President focusing on his personal behaviour, Democrat leaders have until today to consider their options. A poll by USA TODAY showed more than two-thirds of the public 68% thought Trump’s tweets were offensive. However, amongst Republicans 57% agreed with the President’s tweets and a third “strongly agreed” with them. Following these comments, the President could lose some key voters in his bid for a second term in next year’s elections.

Strong US Retail Sales Figures

Strong US Retail Sales figures

The US economy is performing well, with strong retail sales figures in June coupled with an increase in manufacturing output. These figures point towards stronger than expected economic growth in the second quarter of this year. Previous predictions for growth showed 1.8% which has now been adjusted to 2.1% for this second quarter.

In the US, consumer spending fuels more than two-thirds of the economic output. The US has seen a rise of 0.4% in June from a month earlier in Retail Sales which measures purchases at restaurants, online and at stores across the US. The US has seen four months of consecutive Retail Sales growth which indicates the US economy is very strong.

Despite these positive growth forecasts for the US, the Federal Reserve has concerns over the increasing risks from global growth and trade tensions. The FED has signalled it is ready to cut interest rates potentially later this month. Should the Fed cut interest rates, we could see some movement on the US dollar as historically when a country cut interest rates, we see an impact on  the currency.

 

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