Daniel Wright
Sales Director
Trump signs trade pact, is impeached
US dollar gains following progress on long standing trade war with China, as impeachment risks being political theatre.
Request a quoteThe pound to US dollar exchange rate weakened this week, partly because UK Prime Minister Boris Johnson will soon legislate, to prohibit the British government from extending the UK’s future EU trade talks beyond the end of next year.
Trump signs trade pact which could strengthen US economy
Turning to the USA, the greenback gained this week, for a number of reasons. To begin, US President Donald Trump signed a “first phase” trade deal with China, to limit their commercial war on each other.
Washington will cut its tariffs on hundreds of billions of dollars worth of Chinese imports, while Beijing will buy more US farm goods. This has strengthened the US dollar because as a result of these changes Chinese goods will be cheaper in America. This means American shoppers who buy these goods will have more spare dollars to spend elsewhere, thereby bolstering the United States’ economic growth. So the announcement of the trade truce has supported the buck.
Democrats impeach Trump, yet Senate to absolve him
The US House of Representatives has impeached President Trump. This week, the Democrat-controlled House voted by 230 to 197 to impeach the current President, for abuse of power in the ongoing Ukraine scandal. President Trump is only the third US Commander-In-Chief in history to be impeached, following Andrew Johnson in 1868, and Bill Clinton in 1998.
President Trump will now go to trial in the US Senate, where theoretically he could be stripped of office. However, President Trump’s Republican Party controls the Senate, so the impeachment is unlikely to advance. This risks reducing the Democrats’ actions to political theatre, and the US dollar thus remains supported.
Will US expansion continue in 2020?
Looking ahead to 2020, a significant question is whether the USA’s economic expansion will continue. It’s now 126 months old, the longest in America’s history, leading many investors to wonder when the USA might enter recession.
To sustain the expansion, the US Federal Reserve could cut interest rates further next year, from their current 1.5%-1.75%. Traditionally, this would weaken the greenback, by making it less profitable to invest in USD-denominated assets.
Download our monthly currency forecast
Download hereNews
L. Aldred
UK
I have used Foreign currency direct on two occasions, both were stressful times for me but Daniel and staff were wonderful. Every step was explained and all queries answered fully and swiftly. I would not hesitate to recommend to anyone for an excellent service.
E. Godwin
Australia
I decided to use this company after reading many blogs by Daniel Wright on the forecast of Sterling. He always seemed to get his predictions right and also seemed to have not only very good knowledge but a passion for the industry he is in. Daniel was not only informative but patient and gave us options on the lead up to our currency exchange.
H. Taylor
France
I only have praise for the way this company make the stressful experience of Forex a simple process. Difficult to be specific but there is always the personal touch. Recently, with the BREXIT hysteria the dealers must have been very busy but Daniel Wright was always available or never failed to ring me when requested.
J. Warnes
UK
A totally reliable and trustworthy service. I have used them on three occasions now and my money has always come over on the agreed date at the agreed rate. Daniel Wright is a pleasure to deal with -patient, personable and professional.