Pound US dollar exchange rate: GBP rises – Donald Trump threatens to close Mexican border

The US dollar has been weakened by fears that domestic political tensions could once again flare up, following President Donald Trump’s reiteration on Sunday that he would possibly close the border with Mexico. Mick Mulvaney, the White House Chief of Staff, commenting on the absence of the Democrats’ support, said: “Faced with those limitations, the president will do everything he can. If closing the ports of entry means that, that’s exactly what he intends to do. “We need border security and we’re going to do the best we can with what we have.”

Today will see the publication of the US retail sales figures for February, which are expected to sink against January.

These will be followed by the US ISM Manufacturing PMI figures for March, an uptick could provide some uplift for the greenback. 

Sterling, meanwhile, rose today on hopes that tonight’s parliamentary vote could break the Brexit deadlock.

MPs will partake in the second round of indicative votes which will determine if there is a consensus alternative to Theresa May’s Brexit deal.

This has come after Mrs May’s Brexit deal was rejected for a third time last week, following MPs rejecting all eight of the alternatives during the first round of indicative votes. 

Speaker John Bercow will be selecting the options later on today, which may include staying in the customs union, a ‘confirmatory public vote’, or the option of a unilateral right of exit from the Irish backstop. 

Any indications that the DUP are getting on board with Mrs May’s Brexit deal would prove beneficial to the pound, with the party being crucial in her deal gaining traction in Parliament. 

European Commission President Jean-Claude Juncker, however, warned the UK that his patience is running out.

e said: “So far, we know what the British parliament says no to, but we don’t know what it might say yes to.

We have had a lot of patience with our British friends over Brexit, but patience runs out.”

Today saw the publication of the UK Markit Manufacturing PMI figures for March, which came in far higher than expected at 55.1. 

Rob Dobson, a Director at IHS Markit, said: “Manufacturers reported a surge of business activity in March as companies stepped-up their preparations for potential Brexit-related disruptions. Stocking of finished goods and input inventories surged to new survey-record highs.”

The pound US dollar exchange rate will be sensitive to any signs of a breaking of the Brexit stalemate in the House of Commons tonight, and any indications that the UK could leave the EU with a deal would prove positive to Sterling.

source: express.co.uk